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DARPA awards Medicago $21 million

August 10, 2010 10:44 PM UTC

The U.S. Defense Advanced Research Projects Agency awarded Medicago Inc. (TSX:MDG) $21 million to demonstrate the scalable manufacturing of its plant-expressed virus-like particles (VLP) vaccines. Medicago plans to develop a cGMP facility in Research Triangle Park, N.C., with the goal of producing 10 million doses per month of influenza vaccines. Alexandria Real Estate Equities will contribute $13.5 million to fund development of the facility under a sale and leaseback agreement.

Medicago also said it will contribute $7.5 million for the project. To fund its portion, the company proposed to raise up to C$7 million ($6.8 million) in an equity offering through the sale of up to 17.3 million units at C$0.41 per unit. Each unit comprises a share and five-year warrant to purchase 0.75 shares, with each whole warrant exercisable at C$0.50. Dundee Securities and Paradigm were agents for the offering, while Roth Capital and Bloom Burton were members of the selling group. ...