QLT Cancels $20 Million Private Placement

QLT Inc. QLTI revealed it cancelled the US$20 million private placement announced by it earlier. According to the company, its Board of Directors decided it wouldn't be in the best interests of the company to dilute its existing shareholders.

QLT said the private placement agreement was struck with some investors on June 8 last year, which was in line with its announcement of the then planned acquisition of InSite Vision Incorporated. That was subsequently terminated after InSite Vision got a takeover offer for an approximate 100% premium over QLT's original negotiated price.

The company said that when the private placement was announced on June 8 last year, QLT disclosed that the private placement would be completed before April 30 after the closing of the InSite Vision transaction. QLT indicated it recently completed purchase and distribution of shares in Aralez Pharmaceuticals Inc.

As a result of the termination of QLT's acquisition of InSite Vision, QLT Board determined that additional cash resources were not necessary at this time. Therefore, its Board has determined that the Company's cash requirements did not justify the dilution that would be caused by the private placement.

On Friday, the stock traded 1.34 percent higher.