Lorus Therapeutics Announces
Proposed Rights Offering and Financing Commitment
TORONTO, CANADA, August 30, 2010 – Lorus Therapeutics Inc. (TSX: LOR; OTCBB: LRUSF)
(“Lorus” or the “Company”) today announced that due to unfavorable market conditions the board
of directors of Lorus has decided that the Company will not be proceeding with its previously
announced public equity offering. In lieu thereof Lorus is intending to do a shareholder rights
Under the proposed terms of the rights offering, shareholders of Lorus will receive one right for
each common share held. The Company expects that two rights will enable the holder to purchase
one unit, each unit consisting of one common share and one common share purchase warrant. The
expected price per unit will be a 10% discount from the 20 day average trading price of the Lorus
common shares at the time a final prospectus is filed with the Canadian securities commissions.
Each warrant will enable the holder to acquire one common share of Lorus at an exercise price (the
“Exercise Price”) equal to 120% of the unit price for a period of 18 months after the closing of the
proposed rights offering. If at any time from or after the initial six month period after closing of the
rights offering the trading price of the common shares exceeds 175% of the Exercise Price for a
period of 5 trading days, Lorus will have the right to cause the warrants to expire after a 30 day
The terms of the proposed rights offering may change and the proposed rights offering is subject to
regulatory approval, including the approval of the Toronto Stock Exchange.
The Company has secured a financing commitment for an investment of $4 million by Herbert
Abramson, one of Lorus’ directors by way of standby purchase arrangements for the proposed
rights offering. Mr. Abramson has agreed to make an investment such that the minimum gross
proceeds of the proposed rights offering are $4 million.
Prior to the co