Statement re YM BioSciences Raises US$40 MIllion

    YM BioSciences raises US $ 40 million

 

    MISSISSAUGA, Canada, Feb. 14 /CNW/ - YM BioSciences Inc. (AMEX:YMI,

TSX:YM, AIM:YMBA), the cancer product development company, today announced

that it has received subscriptions for approximately 9.5 million common shares

in a "registered direct" offering at an issue price of US $4.25 for gross

proceeds of approximately US $40 million. SG Cowen & Co., LLC served as lead

placement agent and Dundee Securities Corporation and Canaccord Capital

Corporation served as co-placement agents for the transaction.

    The funds will be used principally to fund YM's drug development

activities and for general corporate purposes.

    Subscribers for the issue included leading health care institutional

investors led by Great Point Partners, LLC

    The transaction is expected to close on or about February 17, 2006,

pending stock exchange approval.

    This press release shall not constitute an offer to sell or the

solicitation of an offer to buy, nor shall there be any sale of the common

shares in any state in which such offer, solicitation or sale would be

unlawful prior to the registration or qualification under the securities laws

of any such state.

 

    About YM BioSciences

    YM BioSciences Inc. is a cancer product development company. Its lead

drug, tesmilifene, is a small molecule chemopotentiator currently undergoing a

700-patient pivotal Phase III trial in metastatic and recurrent breast cancer.

In addition to tesmilifene, YM BioSciences is developing nimotuzumab, an  

anti-EGFr humanized monoclonal antibody, in a number of indications.

    In May 2005, the Company acquired DELEX Therapeutics Inc., a private

clinical stage biotechnology company developing AeroLEF(TM), a unique

inhalation delivered formulation of the established drug, fentanyl, to treat

acute pain including cancer pain. YM BioSciences is also developing its   

anti-GnRH, anti-cancer vaccine, Norelin(TM), for which Phase II data have been

released. The Company also has a portfolio of preclinical compounds.

 

    Except for historical information, this press release may contain forward-

looking statements, which reflect the Company's current expectation regarding

future events, including with respect to the closing of the offering of the

common shares. These forward-looking statements involve risk and

uncertainties, which may cause but are not limited to, the failure to obtain

stock exchange approval for the offering of the common shares, changing market

conditions, the successful and timely completion of clinical studies, the

establishment of corporate alliances, the impact of competitive products and

pricing, new product development, uncertainties related to the regulatory

approval process and other risks detailed from time to time in the Company's

ongoing quarterly and annual reporting.

    A prospectus relating to the offering that meets the requirements of the

United States Securities Act of 1933 can be obtained from Investor Relations

at the Company at Tel: [phone] or email ir(at)ymbiosciences.com.

 

    For further information: Enquiries: Thomas Fechtner, The Trout Group

LLC, Tel. [phone] x31, Fax [phone], Email:

tfechtner(at)troutgroup.com; Carolyn McEwen, YM BioSciences Inc., Tel.

[phone], Fax [phone], Email: ir(at)ymbiosciences.com; James

Smith, the Equicom Group Inc., Tel. [phone] x 229, Fax [phone],

Email: jsmith(at)equicomgroup.com

    (YMBA YM. YMI)

 



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