Labopharm Inc. (TSX: DDS; NASDAQ: DDSS) today announced it has provided YA Global Master SPV Ltd. with notice of its intention to draw down $1 million under its previously announced standby equity distribution agreement (SEDA). (All currency figures are in Canadian dollars.)
In accordance with the terms of the SEDA, the common shares to be issued to YA under the drawdown will be priced at a discount of up to 5% to the daily volume weighted average price over the ten consecutive trading days following Labopharm's notice of its intention to draw down on the SEDA. The drawdown and issuance of shares is subject to a minimum share price of $2.00 per share, below which price Labopharm will not be issuing shares pursuant to the drawdown notice. Based on the minimum share price, the maximum number of shares to be issued under this drawdown is 500,000.
On December 14, 2009, Labopharm filed a final short form base shelf prospectus and a registration statement with securities authorities in Canada and the United States, respectively. Copies of the final short form base shelf prospectus and the registration statement are available on SEDAR (www.sedar.com) and EDGAR (www.sec.gov) or may be obtained upon request to the Labopharm contact mentioned below. In connection with the drawdown, Labopharm will also file immediately following the ten-day pricing period a prospectus supplement to its short-form base shelf prospectus and registration statement to qualify the shares to be issued to YA under the drawdown notice.