On June 29, 2004, MethylGene Inc., a biopharmaceutical company seeking treatment for cancer and infectious diseases, completed its initial public offering  for gross proceeds of $20,017,500.  The offering marked the first Canadian initial public offering in the biotechnology sector in the last three years.  Immediately prior to the closing of the initial public offering, MethylGene also completed a concurrent private placement of 323,576 common shares at the initial public offering price, for gross proceeds of $1,375,198.  A syndicate of investment dealers co-led by Orion Securities Inc. and RBC Dominion Securities Inc., and including Desjardins Securities Inc. and Raymond James Ltd., participated in the financing.

MethylGene has granted the underwriters an option to purchase up to an additional 706,500 common shares at the offering price during the period ending 60 days from the closing of the offering to cover over-allotments and for market stabilization purposes.  If the over-allotment is exercised in full, total gross proceeds of the offering, together with the private placement, will be approximately $24.4 million.

MethylGene was represented by Davies Ward Phillips & Vineberg LLP, with a team that included Richard Cherney, Olivier Désilets, Sébastien Roy (corporate finance and securities) and Fred Purkey (taxation) in Montréal and Gerald Shepherd and Christian Lucky (corporate finance and securities) in New York.