Zomedica Corp. Announces Closing of $173.5 Million Bought Deal

Rhea-AI Summary

Zomedica Corp. (NYSE American: ZOM) has successfully closed a public offering of 91,315,790 common shares priced at $1.90 each, generating gross proceeds of approximately $173.5 million. The company has granted underwriters an option to purchase up to 13,697,368 additional shares. Proceeds will be allocated to the development of diagnostic platforms, potential strategic acquisitions, and general corporate purposes, including possible repurchase of outstanding Preferred Shares. The offering was managed by H.C. Wainwright & Co. and was made under an effective shelf registration with the SEC.

Positive

• Gross proceeds of approximately $173.5 million from the public offering.
• Proceeds to be used for development of diagnostic platforms and strategic acquisitions.

Negative

• Potential dilution of existing shareholders due to large share issuance.
• Uncertainty related to the future use of proceeds and regulatory approvals.

ANN ARBOR, Mich., Feb. 11, 2021 (GLOBE NEWSWIRE) -- Zomedica Corp. (NYSE American: ZOM), (“Zomedica” or the “Company”), a veterinary health company creating point-of-care diagnostics products for dogs and cats, today announced that the closing of its previously announced public offering of 91,315,790 common shares of Zomedica, at a price to the public of $1.90 per share, less underwriting discounts and commissions. As previously announced, Zomedica also has granted to the underwriter a 30-day option to purchase up to 13,697,368 additional common shares at the public offering price, less underwriting discounts and commissions.

H.C. Wainwright & Co. acted as the sole book-running manager for the offering.

The gross proceeds are approximately $173.5 million, before deducting underwriting discounts and commissions and other offering expenses payable by Zomedica. Zomedica intends to use the net proceeds from the offering for the continued development of its diagnostic platforms, including making milestone payments, if any, as they come due, under its existing license and collaboration agreements, for strategic acquisitions if and when they become available, and other general corporate and working capital purposes and may use a portion of the net proceeds to repurchase some or all of its outstanding Series 1 Preferred Shares, although no agreement has been reached with respect to the terms or conditions of any such repurchase.

A shelf registration statement on Form S-3 (Registration No. 333-228926) relating to the securities being offered was filed with the Securities and Exchange Commission (“SEC”) and was declared effective on January 30, 2019. The offering was made only by means of a prospectus supplement and accompanying base prospectus. A final prospectus supplement and accompanying base prospectus relating to the offering were filed with the SEC and are available for free on the SEC's website located at http://www.sec.gov. and may also be obtained by contacting H.C. Wainwright & Co., LLC, 430 Park Avenue, 3rd Floor, New York, NY 10022, by telephone at (646) 975-6996, or by email to placements@hcwco.com.

The common shares are not being offered to residents of Canada or persons in Canada. The common shares were sold on the basis of prospectus exemptions under applicable Canadian securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying base prospectus forming a part of the effective registration statement.

About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American: ZOM) is a veterinary health company creating products for dogs and cats by focusing on the unmet needs of clinical veterinarians. Zomedica’s product portfolio will include innovative diagnostics and medical devices that emphasize patient health and practice health. It is Zomedica’s mission to provide veterinarians the opportunity to increase productivity and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.

Follow Zomedica

• Email Alerts: http://investors.zomedica.com
• LinkedIn: https://www.linkedin.com/company/zomedica

Forward-Looking Statements Except for statements of historical fact, this news release contains certain "forward-looking information" or “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include statements relating to Zomedica’s expectations regarding the public offering. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: market and other conditions and the intended use of net proceeds from the public offering. There is uncertainty as to whether our strategies and business plans will yield the expected benefits; uncertainty as to the timing and results of development work and pilot and pivotal studies, uncertainty as to the likelihood and timing of regulatory approvals, availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; veterinary acceptance of our products; competition from related products; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; our ability to secure and maintain strategic relationships; risks pertaining to permits and licensing, intellectual property infringement risks, risks relating to future clinical trials, regulatory approvals, safety and efficacy of our products, the use of our product, intellectual property protection, risks related to the novel coronavirus disease 2019 (“COVID-19”) and its impact upon Zomedica’s business operations generally, including Zomedica’s ability to develop its diagnostic products, and the other risk factors disclosed in the prospectus supplement and the accompanying base prospectus as well as our filings with the Securities and Exchange Commission and under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Investor Relations Contact:
PCG Advisory
Kirin Smith, President
ksmith@pcgadvisory.com 
+1 646.863.6519

FAQ

What is the recent public offering of Zomedica (ZOM)?

Zomedica closed a public offering of 91,315,790 common shares at $1.90 per share, raising gross proceeds of approximately $173.5 million.

How will Zomedica (ZOM) use the proceeds from the offering?

The proceeds will be used for developing diagnostic platforms, strategic acquisitions, and general corporate purposes.

What options did Zomedica grant to its underwriters following the public offering?

Zomedica granted its underwriters a 30-day option to purchase an additional 13,697,368 common shares.