MONTREAL, QUEBEC--(Marketwired - Feb. 20, 2018) - Pursuant to the early warning requirements of National Instrument 62-103, Knight Therapeutics Inc. ("Knight") (TSX:GUD) announced today an increase in its interest in the securities of Crescita Therapeutics Inc. ("Crescita").
On February 16, 2018 Knight received 2,079,973 rights (the "Rights") of Crescita issued under the terms of Crescita's Rights Offering Circular dated February 2, 2018 (the "Rights Offering"). Each two Rights entitles Knight to subscribe for one common share of Crescita (a "Share") at a subscription price of $0.53 per share until 4:00 p.m. on March 9, 2018. Should Knight exercise the Rights in full, Knight would acquire an additional 1,039,986 Shares, representing a 6.9% of Shares oustanding, after giving effect to the exercise of the Rights held by Knight only.
Prior to the acquisition of the Rights, Knight owned an aggregate of 2,079,973 Shares representing approximately 14.9% of the outstanding Shares and 396,000 common share purchase warrants of Crescita (the "Warrants"). Should Knight exercise the Warrants, Knight would acquire an additional 396,000 Shares, representing combined holdings of approximately 17.2% of the outstanding Shares, after giving effect to the exercise of the Warrants owned by Knight only.
In connection with the Rights Offering, Knight entered into a backstop agreement with Crescita whereby it committed to exercise 1,509,432 Rights to subscribe for 754,716 Shares for an aggregate subscription price of $400,000 conditional upon a raise of at least $2,000,000 ("Minimum Raise") in the Rights Offering. As such, the 754,716 Shares would represent a 5.1% of Shares outstanding, after giving effect to the exercise of the Rights held by Knight only.
Immediately after the acquisition of the Rights, and should Knight exercise both the Rights and the Warrants in full, it would own an aggregate of 3,515,959 Shares (including the 2,079,973 Shares it currently owns), representing approximately 22.8% of the outstanding Shares, assuming the exercise of Warrants and Rights held by Knight only. Furthermore, based on the irrevocable commitments of $2,060,000 obtained by Crescita as at February 2, 2018 and the exercise of the Warrants, Knight's ownership will not exceed 17.7% of Shares outstanding.
Knight acquired 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 Crescita Therapeutics Inc.
Crescita (TSX:CTX) is a publicly traded, Canadian commercial dermatology company with a portfolio of non-prescription skincare products for the treatment and care of skin conditions and diseases and their symptoms and prescription drug products for the treatment of pain. Crescita owns multiple proprietary drug delivery platforms that support the development of patented formulations that can facilitate the delivery of active drugs into or through the skin. For additional information, please visit www.crescitatherapeutics.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.