Intellipharmaceutics International (NASDAQ: IPCI; TSX: I) is engaged in the research, development, and commercialization of controlled-release and targeted pharmaceutical products. Controlled-release means releasing a drug into the bloodstream or at a target site in the body, over an extended period of time or at predetermined times. In some circumstances, controlled-release drug delivery can enhance efficacy and patient compliance as compared to immediate release formats for the same drug.
The Company announced that "it has closed its previously announced registered direct common share offering for gross proceeds of approximately US$5 million."
Intellipharmaceutics sold 1,818,182 shares to American institutional investors at US $2.75 per share, and plans to use the proceeds of this sale to apply for further Abbreviated Drug Applications (ANDA) with the FDA. The proceeds from this sale will also be used "to advance clinical trials for its abuse resistant Rexista™ technology and/or other NDA 505(b)(2) opportunities, to establish additional partnerships, and for working capital, research, product development and general corporate purposes."
The shares described above "were offered by Intellipharmaceutics through a prospectus supplement pursuant to a shelf registration statement previously filed with and subsequently declared effective by the Securities and Exchange Commission. A prospectus supplement relating to the offering was filed with the SEC and is available on the SEC's website at http://www.sec.gov." Roth Capital Partners, LLC, served as the sole placement agent for the offering.