Transition Therapeutics Inc. is raising up to $2.5 million in private financing to advance its studies on treatments for diabetes and multiple sclerosis, and to acquire a private company researching therapies for stroke and Parkinson's patients.
Transition said Tuesday it will issue more than 7.1 million shares at 35 cents each, with $500,000 committed by Transition's chairman and CEO, Dr. Tony Cruz.
Proceeds from the financing, which is expected to be closed by Nov. 22, will be used to advance Transition's two ongoing phase-one studies in diabetes and multiple sclerosis treatments and prepare for phase-two studies in diabetes therapies.
Transition also said it has agreed to acquire 21 million warrants to buy a 46 per cent stake in Stem Cell Therapeutics Inc., from Curtis Investment Corp. and Cavendish Investing Ltd.
Transition would also hold share purchase warrants which, if exercised, would increase its holdings in SCT to about 57 per cent.
SCT is a privately held company that is investigating regenerative therapies for stroke and Parkinson's disease and has demonstrated recovery of motor function in animals from strokes in therapies it has under investigation.
"SCT's technologies complement Transition's leading regenerative therapy
for diabetes, Islet Cell Neogenesis, and positions Transition as a leader
in the development of regenerative medicines," Transition said in a statement.
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