Cynapsus arranges debenture financing

Cynapsus Therapeutics (TSX-V:CTH) has arranged a financing of $155,172 of 10% secured Series E-3 debentures due on or before March 31, 2012.

As part of the financing, the company will pay a 13% capital discount to the debenture holders, resulting in net proceeds of $135,000, and will issue 540,000 common shares to the debenture holders at a price of 5 cents a share. The debentures are secured by a security interest in the assets of the company.

Proceeds will be used to fund ongoing research and development activities of Cynapsus’ APL 130277 product, repayment of the Series B debenture, working capital and general corporate purposes.

Summer Street Research Partners acted as placement agent for the secured debentures, which are subject to a four-month hold period.

The company also said it is taking the necessary actions to complete the acquisition of Adagio Pharmaceuticals before Dec. 31, 2011. The acquisition was approved by shareholders last month.