WINNIPEG, MANITOBA, Dec. 1, 2009 (Marketwire) --
WINNIPEG, MANITOBA -- (Marketwire) -- 12/01/09 -- Kane Biotech Inc. (TSX VENTURE: KNE) (the "Company"), a biotechnology company engaged in the development of products that prevent and disperse microbial biofilms, has closed its previously announced private placement offering (the "Offering") with aggregate gross proceeds to the Company of $563,615 from the sale of 4,335,500 units ("Units") at a price of $0.13 per Unit. Each Unit is comprised of one common share of the Company (a "Share") and one-half of one Share purchase warrant (a "Warrant"). Each whole Warrant will expire 18 months from the date the Warrant is issued (the "Expiry Date") and will entitle the holder to purchase one Share at a price of $0.17 if purchased within 6 months from the date the Warrant is issued or $0.25 if purchased after 6 months up to the Expiry Date. The net proceeds of the Offering shall be used for research and development and working capital purposes. The Shares and Warrants will be restricted from transfer for a period of four months and a day from the date hereof in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
Certain persons assisted the Company by introducing potential subscribers for the Offering and were paid a finder's fee of up to 8% of the total subscription proceeds received from subscribers introduced to the Company by each particular person. Additionally, these persons were issued compensation warrants ("Compensation Warrants") up to 7% of the total number of Units subscribed for by subscribers introduced to the Company by each particular person. Each Compensation Warrant entitles the holder thereof to purchase one Share at a price of $0.14 for a period of 12 months from the date of issue.
The closing of the Offering is subject to the final approval of the TSX Venture Exchange.
About Kane Biotech Inc.
Kane Biotech is a biotechnology company engaged in the development of products to prevent and disperse biofilms. Biofilms develop when bacteria, and other microorganisms, form a protective matrix that acts as a shield against attack. When in a biofilm, bacteria become highly resistant to antibiotics, biocides, disinfectants, high temperatures and host immune responses. This resiliency contributes to human health problems such as recurrent urinary tract infections, medical device associated infections and tooth decay.
Kane Biotech uses a patent protected technology based on molecular mechanisms of biofilm formation and methods for finding compounds that inhibit or disrupt biofilms.
