Knight Acquires Shares Pursuant to Crescita Rights Offering
MONTREAL, QUEBEC–(Marketwired – March 13, 2018) - Pursuant to the early warning requirements of National Instrument 62-103, Knight Therapeutics Inc. (“Knight”) (TSX:GUD) announced today the acquisition and disposition of securities of Crescita Therapeutics Inc. (“Crescita”).
On March 12, 2018, Knight acquired 754,716 common shares of Crescita (“Shares”) at an aggregate price of $400,000 following the exercise of 1,509,432 rights (the “Rights”) pursuant to the terms of Crescita’s Amended Rights Offering Circular dated February 13, 2018 (the “Rights Offering”). The exercise fulfilled Knight’s commitment under a backstop agreement with Crescita to exercise 1,509,432 Rights conditional upon a raise of at least $2 million in the Rights Offering. A total of 7,001,603 Shares will be issued by Crescita for gross proceeds of approximately $3.7 million under the Rights Offering. The 754,716 Shares represent 3.6% of Shares outstanding, after giving effect to the 7,001,603 Shares issued in the Rights Offering.
In addition, prior to the expiry of the Rights Offering on March 9, 2018 at 4:00 p.m. (Toronto time), Knight sold, through the Toronto Stock Exchange, an aggregate of 570,540 Rights at $0.01 per Right.
Prior to the exercise and sale of the Rights, Knight owned an aggregate of 2,079,973 Shares representing approximately 14.9% of the outstanding Shares, 396,000 common share purchase warrants of Crescita (the “Warrants”) and 2,079,973 Rights to subscribe for 1,039,986 Shares. Had Knight exercised both the Warrants and Rights in full, it would have acquired an additional 1,435,986 Shares, representing combined holding of approximately 22.8% of Shares outstanding, after giving effect to the exercise of the Warrants and Rights held by Knight only. Immediately after the exercise of 1,509,432 Rights and the sale of 570,540 Rights, Knight owns an aggregate of 2,834,689 Shares representing approximately 13.5% of Shares outstanding, after giving effect to the 7,001,603 Shares to be issued pursuant to the Rights Offering, as well as 396,000 Warrants. Should Knight exercise the Warrants, it would acquire an additional 396,000 Shares, representing combined holdings of approximately 15.1% of the outstanding Shares, assuming the exercise of Warrants by Knight only, after giving effect to the 7,001,603 Shares to be issued pursuant to the Rights Offering.
Knight exercised and sold the Rights for investment purposes. Knight may in the future purchase or sell securities of Crescita or otherwise trade in securities of or engage in other transactions with respect to Crescita depending on a number of factors, including but not limited to, Crescita’s financial position, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, Crescita’s business or financial condition, and other factors and conditions Knight deems appropriate.
The registered address of Crescita is: 6733 Mississauga Rd., Suite 610, Mississauga, ON L5N 6J5.
For further information, a copy of the Early Warning Report to which this press release relates can be obtained from Samira Sakhia, (514) 678-8930 or on the SEDAR profile of Crescita at www.sedar.com.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight Therapeutics Inc.’s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company’s web site at www.gudknight.com or www.sedar.com.
This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.’s Annual Report and in Knight Therapeutics Inc.’s Annual Information Form for the year ended December 31, 2016. Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.
President and Chief Financial Officer
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