Intellipharmaceutics International closes US $4M financing

Intellipharmaceutics International Inc.



News Release

Intellipharmaceutics Announces Closing of US$4 Million Financing

TORONTO, Oct. 13, 2017 (GLOBE NEWSWIRE) — Intellipharmaceutics International Inc. (Nasdaq:IPCI) (TSX:IPCI) (“Intellipharmaceutics” or the “Company”), a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled- and targeted-release oral solid dosage drugs, announced today the closing of its previously announced registered direct offering consisting of 3,636,364 common shares at a price of US$1.10 per share for gross proceeds of approximately US$4 million. The Company also issued to the investors unregistered warrants to purchase an aggregate of 1,818,182 common shares at an exercise price of US$1.25 per share. The warrants are exercisable six months following the closing date and will expire 30 months after the date they become exercisable. After commissions and estimated offering expenses, the Company received net proceeds of approximately US$3.4 Million.

H.C. Wainwright & Co. acted as exclusive placement agent for the offering.

Intellipharmaceutics intends to use the net proceeds of this offering for general corporate purposes, which may include working capital, capital expenditures, research and development, accounts payable and other commercial expenditures.

The common shares (but not the warrants or the common shares underlying the warrants) were offered by the Company through a prospectus supplement pursuant to the Company’s shelf registration statement on Form F-3 as previously filed and declared effective by the Securities and Exchange Commission (“SEC”) and the base prospectus contained therein (Registration Statement No. 333-218297). The warrants described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and Regulation D promulgated thereunder and, along with the common shares underlying the warrants, have not been registered under the Act, or applicable state securities laws. Accordingly, the warrants and underlying common shares may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. A prospectus supplement and accompanying base prospectus relating to the common share offering is available on the SEC’s website at www.sec.gov. The common share offering was made only by means of a prospectus and related prospectus supplement. Copies of the final prospectus supplement and accompanying base prospectus may also be obtained by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 4th Floor, New York, NY 10022, by phone 646-975-6996 or e-mail placements@hcwco.com.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Intellipharmaceutics

Intellipharmaceutics International Inc. is a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled- and targeted-release oral solid dosage drugs. The Company’s patented Hypermatrix™ technology is a multidimensional controlled-release drug delivery platform that can be applied to a wide range of existing and new pharmaceuticals. Intellipharmaceutics has developed several drug delivery systems based on this technology platform, with a pipeline of products (some of which have received United States Food and Drug Administration (“FDA”) approval) in various stages of development. The Company has Abbreviated New Drug Application (“ANDA”) and New Drug Application (“NDA”) 505(b)(2) drug product candidates in its development pipeline. These include our Oxycodone ER product, an abuse deterrent oxycodone based on its proprietary nPODDDS™ novel Point Of Divergence Drug Delivery System (for which an NDA has been filed with the FDA), and Regabatin™ XR (pregabalin extended-release capsules).