TORONTO, Jan. 7, 2013 (GLOBE NEWSWIRE) -- Intellipharmaceutics International Inc. (Nasdaq:IPCI) (TSX:I), a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs, is pleased to announce that it intends to complete a private placement financing (the "Financing") of US$1.5 million aggregate principal amount of unsecured convertible debentures (the "Debentures"), which will mature January 1, 2015.
The Debentures will bear interest at a rate of 12% per annum, payable monthly, will be pre-payable at any time at the option of the Company, and will be convertible at any time into common shares at a conversion price of US$3.00 per common share at the option of the holder. The Financing will be non-brokered and the net proceeds are to be used for working capital and general corporate purposes. The Financing is expected to close on or about January 10, 2013, subject to the approval of the Toronto Stock Exchange. The Debentures will not be listed on any market. If the Debentures were to be fully converted into common shares of the Company, the shares would represent approximately 2.8% of the Company's currently issued common shares on a non-diluted basis.
Dr. Isa Odidi, CEO and Co-Founder, and Dr. Amina Odidi, COO and Co-Founder, of the Company and who directly and through their family holding company are its largest shareholders, owning approximately 33.5% of its currently issued shares on a non-diluted basis, intend to provide the Company with the approximately US$1.5 million of the proceeds for the Debentures. The participation of the Odidis, as related parties, in the Debenture transaction was approved by the directors of the Company who are independent of such related parties."We have decided to invest additional monies in Intellipharmaceutics because we strongly believe in the Company and its prospects, and we will continue to work for the long-term benefit of the Company and its shareholders," stated Drs. Isa and Amina Odidi.