Merus Labs International Inc. Announces Closing Of Non-Brokered Private Placement
March 23, 2011
VANCOUVER, March 23 /CNW/ - Merus Labs International Inc. ("Merus" or the "Company") is pleased to announce that it has closed the previously announced non-brokered private placement with Powerone Capital Markets Limited. The Company raised a total of $2,095,000 by issuing 10,475,000 units at the price of 20 cents per unit under the offering.
Each unit consists of one common share of the Company and one share purchase warrant. Each warrant entitles the holder to purchase an additional common share of the Company at a price of 40 cents per share for a period of two years from the date of closing.
A finder's fee in connection with the offering was paid, consisting of an 8 per-cent cash commission and a finder's unit equal to 10 per-cent of the number of units referred. Each finder's option unit is exercisable into one unit at a price of 20 cents per unit for a period of two years from the date of closing. All securities issued pursuant to this offering are subject to a four-month hold period from the date of closing.
Net proceeds from the private placement will be used primarily to launch the Company's line of wound care products, to acquire certain legacy product(s) and for its general working capital.
About Merus Labs International Inc.
Merus is a specialty pharmaceutical company engaged in acquisition and licensing of pharmaceutical products. The Company utilizes its expertise in the North American pharmaceutical markets and its access to capital to acquire and license niche branded products in Canada and United States. Merus further enhances the sale and distribution of these products by introduction of a focused marketing and promotion plan.
This press release may contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including "could", "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report. Except as required by applicable law, we do not intend to update any of the forward-looking statements so as to conform these statements to actual results. Investors should refer to the risks disclosed in the Company's reports filed from time to time with securities regulatory authorities.
For further information:
Dr. Ahmad Doroudian, Chief Executive Officer