Quantcast
Last updated on April 18, 2014 at 17:24 EDT

Patheon Announces Launch of Rights Offering

November 19, 2012

Expected to raise U.S. $30 million

TORONTO, Nov. 19, 2012 /PRNewswire/ – Patheon Inc. (TSX: PTI), a leading provider of contract development and
manufacturing services to the global pharmaceutical industry, today
announced that it will launch a U.S. $30 million transferable rights
offering.

Under the terms of the rights offering, all record holders of the
company’s restricted voting shares as of November 27, 2012 will
receive, at no charge, one transferable subscription right for each
restricted voting share held as of the record date.  For every 13.75
subscription rights held, rights holders will be entitled to subscribe
for one whole restricted voting share at a price of $3.19 per whole
share, payable in either U.S. or Canadian dollars at such holder’s
choice, but subject to any additional restrictions any broker, dealer,
bank or other nominee may impose.  Rights holders who exercise their
subscription rights in full will have the opportunity to over-subscribe
for additional restricted voting shares to the extent shares are
available, subject to certain limitations.  The subscription rights
will be exercisable until 5:00 p.m. (Toronto time) on December 28,
2012, unless extended.

The company expects the total purchase price of the shares offered in
this rights offering to be U.S. $30 million, assuming full
participation.  Patheon intends to use the net proceeds of
approximately U.S. $29.5 million from the rights offering to partially
finance its planned acquisition of Banner Pharmacaps and/or for general
corporate purposes.

The company’s restricted voting shares are traded on the Toronto Stock
Exchange under the symbol “PTI”.  In addition, as the subscription
rights issued in connection with this rights offering are transferable,
the subscription rights will be listed and traded on the Toronto Stock
Exchange under the symbol “PTI.RT”.

The rights offering will be made only by means of a prospectus in the
U.S. and an offering circular in Canada.  A copy of the applicable
offering document will be mailed to all holders of restricted voting
shares as of the record date.  Copies of the prospectus or offering
circular may also be obtained by contacting Patheon by telephone at
919-226-3200 or by email at investorrelations@patheon.com, or Computershare Investor Services Inc., the subscription agent, by
telephone at 1-800-564-6253 or by email at corporateactions@computershare.com.

About Patheon Inc.

Patheon Inc. (TSX: PTI) is a leading global provider of contract
development and manufacturing services to the global pharmaceutical
industry.  The company provides the highest quality products and
services to approximately 300 of the world’s leading pharmaceutical and
biotechnology companies.  Patheon’s services range from preclinical
development through commercial manufacturing of a full array of solid
and sterile dosage forms.

The company’s comprehensive range of fully integrated Pharmaceutical
Development Services includes pre-formulation, formulation, analytical
development, clinical manufacturing, scale-up and commercialization. 
The company’s integrated development and manufacturing network of nine
manufacturing facilities and nine development centers across North
America and Europe, enables customer products to be launched with
confidence anywhere in the world.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements which reflect the
company’s expectations regarding its proposed rights offering. All
statements, other than statements of historical fact, are
forward-looking statements. Wherever possible, words such as “plans”,
“expects” or “does not expect”, “forecasts”, “anticipates” or “does not
anticipate”, “believes”, “intends” and similar expressions or
statements that certain actions, events or results “may”, “could”,
“should”, “would”, “might” or “will” be taken, occur or be achieved
have been used to identify these forward-looking statements. Although
the forward-looking statements contained in this press release reflect
the company’s current assumptions based upon information currently
available to it and based upon what it believes to be reasonable
assumptions, the company cannot be certain that actual results will be
consistent with these forward-looking statements. The company’s current
material assumptions include assumptions related to the timing and
completion of the proposed acquisition of Sobel USA Inc. and Banner
Pharmacaps Europe B.V. (collectively referred to as “Banner”) and the
related equity and debt financings. Forward-looking statements
necessarily involve significant known and unknown risks, assumptions
and uncertainties that may cause the company’s actual results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements. These
risks and uncertainties include, among other things, risks related to
the company’s ability to complete the proposed acquisition of Banner
and the related equity and debt financings. For additional information
regarding risks and uncertainties that could affect the company’s
business, please see Item 1A “Risk Factors” in our Annual Report on
Form 10-K for the fiscal year ended October 31, 2011 and the company’s
subsequent filings with the U.S. Securities and Exchange Commission and
the Canadian Securities Administrators. Although the company has
attempted to identify important risks and factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors and
risks that cause actions, events or results not to be as anticipated,
estimated or intended. Forward-looking statements are provided to help
stakeholders understand the company’s expectations and plans as of the
date of this release and may not be suitable for other purposes.  There
can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements. These
forward-looking statements are made as of the date of this press
release and, except as required by law, the company assumes no
obligation to update or revise them to reflect new events or
circumstances.

SOURCE Patheon Inc.


Source: PR Newswire