IntelGenx Launches Preferred Share Regulation A Offering

SAINT LAURENT, Quebec, Feb. 20, 2024 (GLOBE NEWSWIRE) -- IntelGenx Corp. (TSX:IGX) (OTCQB:IGXT) (the "Company" or "IntelGenx") today announced the launch of a Regulation A offering of up to 2,000,000 shares of Series A Convertible Cumulative Preferred Stock (“Series A Preferred Stock”), par value $0.00001 per share, at an offering price of $10.00 per share (the “Offering”), for a maximum Offering amount of $20,000,000.

Holders of the Series A Preferred Stock will be entitled to receive cumulative dividends in the amount of $0.20 per share each quarter, or 8% per year. Each share of Series A Preferred Stock will be convertible into twenty (20) shares of our common stock (“Common Stock) at the option of the holder, subject to certain conditions in accordance with the requirements of the Toronto Stock Exchange. Commencing on the fifth anniversary of the initial closing of this offering and continuing indefinitely thereafter, the Company shall have a right to call for redemption the outstanding shares of the Series A Preferred Stock at a call price equal to 150% of the original issue price of the Series A Preferred Stock, and correspondingly, each holder of shares of the Series A Preferred Stock shall have a right to sell the shares of Series A Preferred Stock held by such holder back to the Company at a price equal to 150% of the original issue purchase price of such shares. The Series A Preferred Stock being offered will rank, as to dividend rights and rights upon the Company’s liquidation, dissolution, or winding up, senior to the Common Stock.

“We are excited to launch this Offering of non-traded preferred shares to allow the Company to raise funds at a valuation that we believe is more reflective of our assets and business prospects,” stated Dwight Gorham, IntelGenx’s CEO. “With the pending U.S. commercial launch of RizaFilm, which we continue to expect to occur in the second quarter, we will be entering into a phase of anticipated rapid growth. This raise will allow us to support that while we also continue to make strategic investments in the advancement of the rest of our product pipeline and services portfolio.”

In the United States, the Offering is being made pursuant to Regulation A under the United States Securities Act of 1933, as amended (the “Securities Act”), and as a private placement in all provinces and territories of Canada, except Quebec. An Offering Statement on Form 1-A, as amended (the “Offering Statement”), relating to these securities has been filed with the U.S. Securities and Exchange Commission (“SEC”) and has been qualified. A copy of the Preliminary Offering Circular that forms a part of the Offering Statement is available on the Company’s EDGAR profile at www.sec.gov/edgar.