Bellus Health Inc. priced its overnight marketed equity offering at 38 Canadian cents per share.
The Canada-based biopharmaceutical company said the offering has attracted a demand of C$20 million for its common shares.
The offering is to be effected on a best efforts basis in Canada. The shares may also be offered in the U.S.
The offering's underwriters will be issued nontransferable broker warrants exercisable for common shares of up to 4% of the shares issued representing gross proceeds of up to C$10 million, and 3% of the shares issued representing gross proceeds in excess of C$10 million or sold to certain excluded subscribers. Each broker warrant will entitle the underwriters to buy 1 common share at the offering price for 18 months from the closing of the transaction.
Net proceeds from the offering will be used to fund research and development activities, including the clinical development of chronic cough drug BLU-5937, and for general corporate purposes.
The transaction is set to close on or about Dec. 12, subject to closing conditions.
Bloom Burton Securities Inc. serves as lead underwriter for the offering, while Cormark Securities Inc. and Mackie Research Capital Corp. act as underwriters.