Living Cell Technologies to Cancel Rights at $O.20
Living Cell Technologies to Cancel Rights at A$O.20 Following A$6M Placement at $0.30 Per Share
November 22, 2007 – Melbourne, Australia and Auckland, New Zealand -Living Cell Technologies Limited (ASX:LCT; OTC: LVCLY.PK) today announced that U.S.based NaviGroup Management Limited has conditionally agreed to waive its 90day right to purchase up to US$6 million of LCT’s ordinary shares at $A0.20 per share, retaining its right to purchase up to US$6 million of LCT’s ordinary shares at 80% of the 30 day average closing bid price for an ordinary share of LCT.
NaviGroup’s waiver of its right to purchase LCT’s ordinary shares at A$0.20 per share is subject to the completion of the previously announced A$6 million placement of LCT ordinary shares by Taylor Collison Limited. Pursuant to the Placement Agreement,Taylor Collison has exercised its right to reduce the placement price from 36 cents to 30 cents per share so that it more closely reflects LCT’s share price at the present time. NaviGroup’s right to purchase additional shares in LCT and the Taylor Collison placement are subject to shareholder approval at the general meeting of shareholders on November 27, and other terms and conditions.
Funds from placements by NaviGroup and Taylor Collison would be used to further LCT’s DiabeCell® clinical trials in Russia and New Zealand, as well as expanding the Company’s infrastructure to meet clinical trial requirements.
LCT’s Chief Financial Officer, Richard Justice said “The changes to the NaviGroup option and the Taylor Collison placement make the terms of LCT’s announced financings more equitable to shareholders and the two groups concerned. The fact that we have U.S. and Australian investors involved demonstrates the strong interest that is being generated in the Company globally.”