.....Stellar Biotechnologies Raises US$10 Million in Initial Closing of Private Placement
PORT HUENEME, CA--(Marketwired - Sep 10, 2013) - Stellar Biotechnologies, Inc. ("Stellar" or "the Company") (OTCQB: SBOTF) (TSX VENTURE: KLH), announced today that, further to its news release of August 22, 2013, it has completed the initial closing of its private placement, which included brokered and non-brokered portions, raising initial gross proceeds of US$10M (the "Initial Closing"). The proceeds of the Initial Closing will be used for product research, aquaculture and KLH production development, capital expenditures and working capital.
The non-brokered portion includes a US$5,000,000 investment by Amaran Biotechnology, Inc., a privately-held Taiwan biotech company and biopharmaceuticals contract manufacturer.
"This financing is significant for Stellar on many fronts. This strengthens our balance sheet at a pivotal time of Stellar's growth while the investment from Amaran Biotechnology, Inc. represents active support from life science industry," said Frank Oakes, Stellar President and CEO. "We are very pleased to receive such solid validation from both industry and new investors."
The Initial Closing included a brokered portion sold to institutional and accredited investors totaling US$3,000,000 (2,857,143 Units) (the "Brokered Offering") and a non-brokered portion totaling US$7,000,000 (6,666,667 Units) (the "Non-brokered Offering").
Each Unit, sold for US$1.05, comprises one share of Stellar's common stock and one half of a share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one additional share of Stellar's common stock at a purchase price of US$1.35 for a period of three years from the issuance date of the Warrants. The Company anticipates a final closing on or before September 20, 2013.
In connection with the Initial Closing of the Brokered Offering, the placement agent received a commission of US$206,325 and 200,000 Warrants.
Subject to additional requirements imposed by the US Securities Act requiring longer hold-periods on certain of the securities for resale by US subscribers in the US market and a lock-up agreement with certain holders of the securities, the securities issued in the Initial Closing are subject to a hold period expiring January 10, 2014.
The securities sold by Stellar in the private placement were not registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), and were sold in reliance upon exemptions from the registration requirements of the US Securities Act. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act and any applicable state securities laws. This press release does not constitute an offer to sell any securities or a solicitation of an offer to purchase any securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state.
