PMI Invests in Biotechnology Company

Source from:  tobaccoreporter.com Oct 28, 2008 10/29/2008

Philip Morris International has invested Canadian$15,975,000 in Medicago Inc, which, according to Medicago's website, is a publicly-traded biotechnology company focused on the development, production and commercialization of protein-based vaccines and biopharmaceuticals using a proprietary manufacturing system developed from its expertise in the genetic engineering of plants. According to the PMI announcement, the investment consisted of a subscription by Philip Morris Participations B.V. (PMP), a wholly owned indirect subsidiary of PMI, for 45,000,000 units of Medicago at a price per unit of Canadian$0.355 by way of private placement. 'Each unit consists of one common share and one common share purchase warrant of Medicago,' the PMI announcement said. 'Each warrant will entitle PMP to purchase one additional common share of Medicago for a period of 24 months at a price equal to: (i) Canadian$0.375 during and up to the period ending on the first anniversary date of the issuance of the warrants; and (ii) Canadian$0.405 thereafter. 'The 45,000,000 common shares comprised in the units acquired by PMP represent 49.8 per cent of the issued and outstanding common shares of Medicago calculated on a non-fully diluted basis. 'PMP acquired the units pursuant to a subscription agreement. The acquisition was made for investment purposes. 'PMI may, subject to market conditions and in accordance with applicable securities laws, make additional investments in or dispositions of securities of Medicago, including additional purchases of Medicago common shares.' Enditem