By Anita Dushyanth
OTC:TBUFF
Tribute Pharma (TBUFF) announced on June 25th 2014 that they are offering 37.3M units, with each issued unit representing one common share and one half warrant at a purchase price of $0.70/unit. The share price on the date of announcement was $0.66/share. Since then the share price has climbed 11% and it trading at $0.73/share, a premium to the offer price. The underwriters have been given the option to place an additional 15% of the units which could lead to added increase in gross proceeds. Tribute has been prudent with their investment ideas and if this transaction closes at the expected term their dry powder reserves will be substantial. As per our talks with management we anticipate the close of this transaction about July 15th 2014 yielding roughly $26M in additional capital. The increase in cash position will serve as a catalyst for furthering their business development opportunities as well as in repayment of their $8.2M debt. The company has built a strong balance sheet and is well-positioned to compete with peers in the pharmaceutical industry. When the transaction comes to fruition, Tribute will gain a significant upside in terms of expanding their existing diverse portfolio.
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TBUFF: Tribute obtains $26M in private placement
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