IntelGenx Technologies completes $762K second tranche

News Release

IntelGenx Closes Second Tranche of Convertible Debenture Offering

Saint Laurent, Quebec, August 8, 2017 – IntelGenx Technologies Corp. (TSXV: IGX) (OTCQX: IGXT) (the “Corporation” or “IntelGenx”) is pleased to announce that it has closed a second tranche of its prospectus offering (the “Offering”) of convertible unsecured subordinated debentures of the Corporation (the “Debentures”), pursuant to which it has raised additional gross proceeds of CDN$762,000.

Together with the principal amount of CDN$6,838,000 of Debentures issued on July 12, 2017 (the “Initial Issuance Date”), the Corporation has now issued an aggregate principal amount of CDN$7,600,000 of Debentures at a price of CDN$1,000 per Debenture (the “Offering”).

The Debentures will mature on June 30, 2020 and bear interest from the Initial Issuance Date at an annual rate of 8% payable semi-annually on the last day of June and December of each year, commencing on December 31, 2017. The Debentures will be convertible at the option of the holders at any time prior to the close of business on the earlier of June 30, 2020 and the business day immediately preceding the date specified by the Corporation for redemption of Debentures. The conversion price will be CDN$1.35 (the “Conversion Price”) per common share of the Corporation (“Share”), being a conversion rate of approximately 740 Shares per CDN$1,000 principal amount of Debentures, subject to adjustment in certain events.

The Debentures are not redeemable prior to June 30, 2018. On or after June 30, 2018, but prior to June 30, 2019, the Debentures may be redeemed at the Corporation’s sole option, in whole or in part, from time to time on required prior notice at a redemption price equal to the principal amount of the Debentures, provided that the current market price on the date on which such notice of redemption is given is not less than 125% of the Conversion Price. On or after June 30, 2019 and prior to June 30, 2020, the Debentures may be redeemed at the Corporation’s sole option, in whole or in part, from time to time on required prior notice, at a redemption price equal to the principal amount of the Debentures, irrespective of the current market price. In addition thereto, at the time of redemption, the Corporation will pay to the holder accrued and unpaid interest up to but not including the date of redemption.

The Debentures were distributed under a short form prospectus dated June 28, 2017 filed by the Corporation in connection with the Offering and available on SEDAR at www.sedar.com. The Offering was conducted, on a best efforts basis, by a syndicate of agents led by Desjardins Capital Markets and including Laurentian Bank Securities Inc. and Echelon Wealth Partners Inc. (collectively, the “Agents”). In consideration for the services rendered by the Agents in connection with this second tranche of the Offering, the Corporation has paid the Agents an agency fee of CDN$45,720.
The Debentures issued in connection with the first and second tranches were listed and posted for trading on the TSX Venture Exchange under the stock symbol IGX.DB.

The Corporation intends to use the aggregate net proceeds from the Offering for capital expansion, clinical studies, product development and general working capital requirements.

The Debentures and the common shares issuable upon conversion, redemption or maturity of the Debentures have been registered with the United States Securities and Exchange Commission pursuant to a Form S-1 Registration Statement that was declared effective on July 11, 2017 (the “Registration Statement”).

About IntelGenx:

Established in 2003, IntelGenx is a leading oral drug delivery company primarily focused on the development and manufacturing of innovative pharmaceutical oral films based on its proprietary VersaFilm™ technology platform.

IntelGenx’ highly skilled team provides comprehensive pharmaceuticals services to pharmaceutical partners, including R&D, analytical method development, clinical monitoring, IP and regulatory services. IntelGenx’ state-of-the-art manufacturing facility, established for the VersaFilm™ technology platform, supports lab-scale to pilot and commercial-scale production, offering full service capabilities to its clients. More information about the company can be found at www.intelgenx.com.

For more information, please contact:

Stephen Kilmer
Investor Relations
(514) 331-7440 ext 232
stephen@intelgenx.com

OR

Andre Godin, CPA, CA
Executive Vice-President and CFO
IntelGenx Technologies Corp.
(514) 331-7440 ext 203
andre@intelgenx.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.