Toronto-based biopharmaceutical firm Transition Therapeutics revealed that it entered into a private placement with investors worth USD 21.7 million. For a price of USD 4.19 per common share, existing shareholders, Transition management and some members of its board, as well as investors composed of Jack W. Schuler, Larry N. Feinberg, and Oracle Investment Management will buy 2,625,298 units of the company. The Toronto Stock Exchange will still have to approve the private placement but it is expected to close on or about August 15, 2013.

Dr. Tony Cruz, Chairman and Chief Executive Officer of Transition Therapeutics said the offering will fund three major studies that are already in the second phase. "In parallel, this offering will allow the Company to continue its business strategy of in-licensing and developing a strong pipeline of molecules through partnerships with pharmaceutical companies. I am very pleased with the on-going commitment and support of our large investors, Board and management that contributed to the financing of the offering," he added.