Wex raises $34.5-million in rights offering

Wex Pharmaceuticals’ (TSX:WXI) rights offering has been fully subscribed, raising $34.5 million through the issuance of 265,483,177 restricted voting shares at a price of 13 cents a share.

The company intends to use the proceeds to continue its research and development of tetrodotoxin and for general administrative costs and working capital.

Controlling shareholder Pharmagesic (Holdings), a unit of CK Life Sciences International (Holdings) of Hong Kong, will acquire 259,241,700 shares by exercising both its basic subscription right and additional subscription privilege, representing 97.6% of the shares issued under the offering. That brings its total holdings to 392,421,034 restricted voting shares or 88.7% of Wex.

CKLS has advised Wex that its additional equity stake is being made as a strategic investment and that CKLS may in the future increase or decrease its ownership of Wex, depending on the business and prospects of Wex and/or CKLS as well as market conditions.