AEterna Zentaris to Raise US$5.5 Million from Institutional Investors at US$1.20...( QUEBEC CITY Oct. 19 / AEterna Zentari...)

QUEBEC CITY, Oct. 19 /PRNewswire-FirstCall/ - AEterna Zentaris Inc. (NASDAQ: AEZS; TSX: AEZ) (the "Company"), a global biopharmaceutical company focused on endocrine therapy and oncology, announced today that it has received commitments to purchase US$5.5 million of units comprised of common shares and common share purchase warrants in a registered direct offering. Under the terms of a Securities Purchase Agreement, the Company will sell to such institutional investors an aggregate of approximately 4.58 million common shares of its capital at a price of US$1.20 per share and issue warrants to acquire an aggregate of approximately 1.83 million common shares at an exercise price of US$1.25 per share.

The warrants to purchase additional common shares of AEterna Zentaris will be immediately exercisable upon issuance and will expire five years after issuance. All of the common shares and warrants were offered pursuant to an effective shelf registration statement. Proceeds from the transaction will be used for general corporate purposes, including clinical development of our leading compounds. The offering is expected to be consummated no later than October 22, 2009, subject to customary closing conditions.

In connection with the offering, the Company will file a prospectus supplement to its existing base shelf prospectus with the Canadian securities regulatory authorities and with the Securities and Exchange Commission. Copies of the prospectus supplement and accompanying prospectus may be obtained directly from the Company or by contacting AEterna Zentaris Inc., 1405 du Parc-Technologique Boulevard, Quebec City, Canada G1P 4P5.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities nor shall there be any sale of such securities in any jurisdiction in which such offer,
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