The bio-pharmaceutical company Lorus Therapeutics filed a preliminary short form in Canada. The short form covers the provinces of Ontario, Alberta, and British Columbia. The filing was done in connection to an offering of up to $17.5 million in units of the Company. Each unit consists of one common share of company stock and one-half of a warrant to purchase common shares. To explain the process a bit further, each whole warrant will permit the holder to purchase one common share at an initial exercise price of 125% of the unit being offered, priced at the time of sale.

Subsequently on each anniversary of the closing date, the price rises by 5% to a maximum exercise price of 145% of the unit offering price on the fourth anniversary of the closing. Lorus may also require the exercise of the Warrants if the closing price of the common shares on the principal market upon which they are traded equals or exceeds 225% of the unit offering price for five consecutive trading days.

There are some terms and conditions to the short sale though that investors should be aware of. The Securities may not be sold, nor may offers to buy be accepted, before the Registration Statement becomes effective. Some disclaimer information must be included here as well. The news release does not constitute an offer to sell or the solicitation of an offer to buy the Securities, nor shall there be any sale of the Securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.