11 January 2013 - Pharmaceutical company Intellipharmaceutics International Inc (TSX:I) reported on Thursday the launch of a non-brokered private placement with $1.5m aggregate principal amount of unsecured convertible debentures.

The company said that the debentures will mature on 1 January 2015, bear interest at a rate of 12% per annum, payable monthly, pre-payable at any time at its option and are convertible at any time into common shares at a conversion price of $3.00 per common share at the option of the holder.

Net proceeds are expected to be used by the company as working capital and general corporate purposes.

If the debentures are fully converted into the company’s common shares, the shares would represent about 2.8% of its currently issued common shares on a non-diluted basis.