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Canada's Med BioGene to File for US IPO

NEW YORK (GenomeWeb News) – Canadian molecular diagnostics firm Med BioGene said yesterday that it intends to file for an initial public offering "as soon as possible" in the US to support development and commercialization of its gene expression-based assay for early-stage non-small-cell lung cancer.

MBI, based in Vancouver, BC, said that it has retained the services of Rodman & Renshaw as lead underwriter for the IPO, and will float an unspecified number of common shares on the Nasdaq Capital Market.

MBI said that it expects to use the proceeds from the US IPO to develop and commercialize its LungExpress Dx and for general corporate purposes.

LungExpress Dx is a 15-gene expression-based assay for early-stage NSCLC that classifies patients into high- and low-risk prognostic groups based upon the molecular profile of a particular patient's tumor.

The assay is expected to be used in conjunction with existing clinical parameters to provide additional independent clinical value beyond standard measures of risk, Med BioGene said.

The company also said yesterday that it has filed an interim non-brokered private placement of a maximum of C$2.5 million (US$2.37 million) worth of units.

Each unit will be issued at a price of C$0.14, the closing price of MBI's common shares on the TSX Venture Exchange on Nov. 12, and will consist of one common share and half of one common share purchase warrant.

Each warrant will entitle the holder to purchase one common share at a price of C$0.20 for a period of 24 months, subject to MBI's accelerating the expiration of the warrants if the closing price of the common shares is greater than C$0.30 for twenty or more consecutive trading days.

MBI said that it will offer the private placement to investors in Canada, as well as to investors in the US, and outside Canada and the US in accordance with applicable regulations.

The company said that it expects to use the private placement proceeds to develop and commercialize LungExpress Dx, and for general corporate purposes, including payment of certain expenses associated with the US IPO.