Full Press Release Details
Announces Private Placement
VICTORIA, British Columbia--(BUSINESS WIRE)--June 15, 2016--Aurinia
Pharmaceuticals Inc. (NASDAQ:AUPH) (TSX:AUP) ("Aurinia" or the
"Company") today announced that it intends to complete a private
placement of units of the Company at a price of US$2.36 per unit, and
has received commitments to purchase units totalling US$7,080,000 (the
"Private Placement").
Each unit will consist of one common share of the Company, and a 0.35 of
one common share purchase warrant exercisable for a period of two years
from the date of issuance at an exercise price of US$2.77.
Aurinia intends to use the net proceeds from the Private Placement to
continue the timely clinical development of voclosporin as a therapy for
lupus nephritis (LN) and for general corporate purposes.
The Chairman of the Board, the Chief Executive Officer, and certain
other officers and existing security holders, among others, are
participating in the Private Placement.
"We greatly appreciate the continued support and confidence shown by our
investors that are participating in this financing," commented Charles
Rowland, Aurinia's President and Chief Executive Officer. "The proceeds
from the financing will enable us to advance product supply, prepare for
the initiation of Phase 3 and product launch with the goal of improving
the lives of patients suffering from this serious condition as quickly
The Company anticipates that the private placement will close on or
about June 20, 2016. The Private Placement is conditional upon the
Company receiving the conditional approval of the Toronto Stock
Exchange. The Private Placement is also subject to the requirements of
Canaccord Genuity Inc. is acting as sole placement agent for the Private
All securities issued pursuant to the Private Placement will be subject
to a four month-and-one-day hold period in Canada and a six month hold
period in the United States in accordance with applicable
securities laws. Pursuant to a registration rights agreement to be
entered into with each subscriber, the Company will, within 30 days of
closing, file a prospectus supplement under its registration statement
on Form F-10 with respect to resales in the United States, from time to
time, of the common shares issuable under the Private Placement and the
common shares issuable upon the exercise of warrants. Upon filing of the
prospectus supplement, the common shares and warrant shares will be
freely tradeable in the United States if sold pursuant to the resale
registration statement.
Certain insiders are participating in the Private Placement. The Private
Placement is exempt from the formal valuation and majority of the
minority requirements applicable to related party transactions as set
out in National Instrument 61-101 Protection of Minority
Securityholders in Special Transactions as the aggregate fair market
value of the securities to be purchased by related parties pursuant to
the Private Placement is less than 25% of Aurinia's market
Aurinia is a clinical stage pharmaceutical company focused on the global
nephrology market. The fully-enrolled Phase 2b AURA-LV clinical trial is
evaluating the efficacy of its lead drug, voclosporin, as a treatment
for active LN. LN is an inflammation of the kidneys, that if
inadequately treated can lead to end-stage renal disease, making LN a
serious and potentially life-threatening condition.
Cautionary Note Regarding Forward-looking Statements
This press release contains forward-looking statements. The
forward-looking statements may include, without limitation, statements
regarding the anticipated closing date for the financing, that the
proceeds from the financing will enable the Company to advance product
supply, prepare for the initiation of Phase 3 and product launch with
the goal of improving the lives of patients suffering from this serious
condition as quickly as possible, and the intended use of proceeds from
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results, events or
developments to be materially different from any future results, events
or developments expressed or implied by such forward looking statements.
Such risks and uncertainties include, among others, the ability of
the Company to protect its intellectual property rights, securing and
maintaining corporate alliances and partnerships, the need to raise
additional capital and the effect of capital market conditions and other
factors on capital availability, the potential of its products, the
success and timely completion of clinical studies and trials, and the
combined company's and its partners' ability to successfully obtain
regulatory approvals and commercialize voclosporin on a timely basis.
These factors should be considered carefully and readers are cautioned
not to place undue reliance on such forward-looking statements. For
additional information on risks and uncertainties relating to these
forward-looking statements, investors should consult the Company's
ongoing quarterly filings, annual reports and the Annual Information
Form and other filings found on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov/edgar.
Aurinia Pharmaceuticals Inc.
Michael R. Martin, (250)
Chief Operating Officer
Financial Communications Inc.
Barry Mire: bmire@renmarkfinancial.com
Welsh: lwelsh@renmarkfinancial.com
Tel: (416) 644-2020 / (514)