Herbert Abramson Acquires Additional Shares of Lorus Therapeutics Inc.
TORONTO, Nov. 12 /CNW/ - Herbert Abramson, a director of Lorus Therapeutics Inc. ("Lorus"), announces that he has acquired, directly or indirectly, 3,600,259 units ("Units") of Lorus at $1.11 per Unit. Each Unit consists of one common share and one common share purchase warrant, each warrant exercisable into one common share at a price of $1.33 until May 8, 2012. If at any time after 6 months following November 9, 2010 the price of Lorus' common shares on the Toronto Stock Exchange equals or exceeds $2.33 for five consecutive trading days, Lorus may call the warrants for cancellation. The acquisition of the common shares forming part of the Units represents approximately 25.5% of the outstanding common shares of Lorus. The acquisition of the Units (including both the common shares and warrants, and assuming the exercise of the warrants by Mr. Abramson but not by other holders) represents approximately 40.7% of the then outstanding common shares of Lorus.
The Units were acquired from treasury in connection with a rights offering by the Issuer. To acquire the Units, in part, Mr. Abramson used funds which were the proceeds of repayment by Lorus to Abramson on November 9, 2010, of outstanding promissory notes owing to Mr. Abramson in the amount of $1,500,000, plus interest in the amount of $24,861.00.
Upon completion of the acquisition, Mr. Abramson owns, directly or indirectly, 5,027,811 common shares of Lorus, representing approximately 35.7% of the issued and outstanding common shares of Lorus. In addition, Mr. Abramson owns stock options exercisable into 14,999 common shares and warrants exercisable into 3,883,592 common shares. If he were to exercise all of the options and warrants held by him, Mr. Abramson would own an aggregate of 8,926,403 common shares, representing approximately 49.6% of the then issued and outstanding common shares of Lorus (on a partially diluted basis, i.e., assuming no options and warrants were exercised by other holders).
The Units were acquired for investment purposes. Mr. Abramson reserves the right to acquire further securities of Lorus depending on market conditions and other relevant factors.
The common shares of Lorus trade on the Toronto Stock Exchange.
An early warning report in respect of the above noted transactions will be filed on SEDAR. Further information can be obtained from:
Herbert Abramson
22 St. Clair Avenue East, 18th Floor, Toronto, ON
Tel: 416-956-9334
For further information:
Herbert Abramson
22 St. Clair Avenue East, 18th Floor, Toronto, ON
Tel: 416-956-9334
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