Vancouver, BC, February 2, 2007--(T-Net)--Chromos Molecular Systems (TSX: CHR) announced today that it intends to raise approximately $8 million (CDN) through a private placement of Units at a price of $0.15 per Unit. The private placement is being co-led by Dundee Securities Corporation, Canaccord Capital Corporation and Clarus Securities Inc. as agents.
Each Unit will comprise one common share of Chromos and one half of one share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one common share of Chromos within 5 years of the date of closing at a price of $0.20 per share.
The closing of this private placement is subject to all necessary regulatory, stock exchange and shareholders approvals. Chromos intends to use the net proceeds principally to fund the commercialization and expansion of Chromos’ cell line engineering business, using its ACE System, and the development of its lead product, CHR-1103. The balance will be allocated to working capital and other general corporate purposes.
About Chromos
Chromos is a biopharmaceutical company with two drug development programs focused on inflammatory diseases and thrombotic disorders. The Company's lead product, CHR-1103, is a humanized monoclonal antibody being developed as an acute treatment for relapses associated with multiple sclerosis (MS). Chromos generates revenue from its proprietary ACE System technology to engineer production quality cell lines to manufacture biopharmaceutical products including monoclonal antibodies. For more information visit our website at www.chromos.com.
Risks and Uncertainties
Certain of the statements contained in this press release are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Chromos (the “Companyâ€), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
To the extent possible, management implements strategies to reduce or mitigate the risks and uncertainties associated with the Company’s operations. Operating risks include (i) the continued availability of capital to finance the Company’s activities; (ii) the Company’s limited cash position, (iii) the ability to successfully obtain proof of the effectiveness of the Company’s technology (iv) the ability to complete and maintain corporate alliances relating to the development and commercialization of the Company’s technology; (v) the ability to obtain and enforce patent and other intellectual property protection for the Company’s technology; (vi) market acceptance of the Company’s technology; (vii) the competitive environment and impact of technological change; (viii) the Company’s ability to attract and retain employees to carry out its business plans; (ix) the timely development and commercialization of any technology or products that are contingent on the completion and maintenance of corporate alliances with third parties and (x) regulatory approval for the conversion of the outstanding Notes. Further details on Chromos’ operating risks can be found in the Company’s Quarterly and Annual Reports to Shareholders.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and many not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws.
FOR FURTHER INFORMATION:
Jeff Charpentier
Vice President, Finance and CFO
Tel: 604-415-7132
Email:jcharpentier@chromos.com
Website: www.chromos.com