SAN DIEGOand VANCOUVER, March 28, 2012/CNW/ - Protox Therapeutics Inc. ("Protox") (TSX: PR X), a developer of innovative products for the treatment of urological diseases, today announced that Warburg Pincus has agreed to invest an additional CDN $8.3 millionin Protox, pursuant to its rights under the terms of the existing Investment Agreement dated September 28, 2010(the "Investment Agreement").
Dr. Lars Ekman, Executive Chairman and President said, "We are very pleased to receive this continued and meaningful support from Warburg Pincus. This additional capital will be utilized to drive development of PRX 302, our novel therapy for the treatment of benign prostatic hyperplasia."
Under the Investment Agreement, Warburg Pincus Private Equity X, L.P. and Warburg Pincus X Partners L.P. (together "Warburg Pincus") have the right to invest up to CDN $35 millionin Protox. The initial CDN $10 millioninvestment closed November 19, 2010and a second CDN $8.3 millioninvestment closed on December 28, 2011. Upon closing of this additional investment, Warburg Pincus will have invested a total of CDN $26.7 millionin Protox under the current Investment Agreement. Warburg Pincus has the right to make further additional investments under the terms of the Investment Agreement.
With this specific CDN $8.3 million, Warburg Pincus has agreed to purchase an additional 20,833,333 units of Protox (the "Subsequent Investment"), on the same terms as the initial investment, being at a price of CDN
.40per unit, where each unit is comprised of one common share of Protox and 0.6 common share purchase warrants. Each whole warrant entitles the holder to purchase one common share of Protox at a price of CDN
.50, exercisable for a period of five years from the date of issue, subject to the acceleration of the expiry date in certain circumstances.
The closing of the Subsequent Investment is expected to occur on March29, 2012, or such other date as is agreed on by Protox and Warburg Pincus, subject to the satisfaction of certain closing conditions. The Investment Agreement and the transactions contemplated previously received approval from Protox's shareholders on November 16, 2010and have also been approved by the TorontoStock Exchange. Upon the closing of the Subsequent Investment, Warburg Pincus will hold 66,666,666 common shares (approximately 40.7% of the Company's outstanding shares) and 40,000,000share purchase warrants.
Warburg Pincus advises that the investment in Protox is being made as a strategic investment and that Warburg Pincus may increase or decrease its investment, directly or indirectly, in Protox from time to time, depending on market conditions or any other relevant factors.
https://www.theglobeandmail.com/globe-investor/news-sources/?date=+20120328&archive=cnw&slug=C8494