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Press release from Marketwire

Trimel Pharmaceuticals Corporation Announces Equity Financing

Wednesday, March 20, 2013

Trimel Pharmaceuticals Corporation Announces Equity Financing15:05 EDT Wednesday, March 20, 2013TORONTO, ONTARIO--(Marketwire - March 20, 2013) -NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESTrimel Pharmaceuticals Corporation (TSX:TRL) (the "Company" or "Trimel") announced today that it has filed a preliminary short form prospectus in connection with a proposed marketed offering (the "Offering") of units ("Units"), with each Unit consisting of one common share of the Company ("Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). The Offering will be conducted through a syndicate of underwriters led by RBC Capital Markets (such syndicate, the "Underwriters").The Common Shares forming a part of the Units will be comprised of a combination of Common Shares issued by the Company ("Treasury Common Shares") and Common Shares sold by Mr. Eugene Melnyk ("Secondary Common Shares"). The Warrants forming a part of the Units will all be Warrants issued by the Company. Mr. Melnyk will receive the net proceeds from the sale of Secondary Common Shares. The Company will receive the net proceeds from the sale of Treasury Common Shares and the Warrants. The Company and Mr. Melnyk have also agreed to grant the Underwriters an option to cover over-allotments and for market stabilization purposes (the "Over Allotment Option"), which will allow the Underwriters to purchase that number of additional Units equal to up to 15% of the offered Units. The Over Allotment Option may be exercised at any time up to 30 days after the closing of the offering. In the event that Mr. Melnyk does not complete a refinancing on or prior to the closing date of the Offering (the "Closing Date") and consequently does not deliver the Secondary Common Shares free and clear of all encumbrances on the Closing Date or does not otherwise deliver the Secondary Common Shares on the Closing Date, the sale of Secondary Common Shares by Mr. Melnyk (and Warrants associated therewith otherwise to be issued by the Company relating to the Secondary Common Shares) shall each be terminated. The offering by the Company of the Treasury Common Shares and the Warrants associated therewith is not conditional upon completion of the sale by Mr. Melnyk of the Secondary Shares and in the event that the sale of the Secondary Shares by Mr. Melnyk is terminated, the Company will not be obligated to issue an equivalent number of Treasury Common Shares in lieu of the Secondary Common Shares or any Warrants relating thereto. The Company intends to use the net proceeds from the sale of Treasury Common Shares and the Warrants to pay for the costs for completing the CompleoTRT™ New Drug Application, costs of Tefina™ clinical trials and for general corporate purposes. The Offering is being made pursuant to a short form prospectus filed in each of the provinces of Canada, except Quebec. A copy of the preliminary short form prospectus is available on SEDAR at www.sedar.com. The Offering will be priced in the context of the market with the final terms of the Offering to be determined at the time of pricing. The Offering is expected to close on or about April 5, 2013 and is subject to certain customary conditions and regulatory approvals, including the approval of the Toronto Stock Exchange and the entering into by the Company, Mr. Melnyk and the Underwriters of an underwriting agreement. This press release does not constitute an offer of securities for sale in the United States or to "U.S. persons" ("U.S. persons"), as such term is defined in Regulation S promulgated under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"). The securities being offered have not been, nor will be, registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from such registration requirements.About Trimel Trimel Pharmaceuticals Corporation (TSX:TRL) - Trimel is a specialty pharmaceutical company actively developing medications for male hypogonadism, female sexual dysfunction and various respiratory disorders. CompleoTRT™, a product utilizing Trimel's licensed bioadhesive intranasal gel technology, has successfully completed its pivotal Phase III study for the treatment of male hypogonadism, a condition commonly referred to as "Low T", and Trimel is preparing to file its New Drug Application with the FDA in the second quarter of 2013. For more information, please visit www.trimelpharmaceuticals.com.Notice regarding forward-looking statements: Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information, are assumptions regarding our future operational results. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the Company is subject to a number of risks and uncertainties, and could differ materially from what is currently expected as set out above. For more exhaustive information on these risks and uncertainties you should refer to our preliminary short form prospectus dated March 20, 2013 which is available at www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Trimel Pharmaceuticals CorporationKenneth G. HowlingChief Financial Officer(416) 679-0536ir@trimelpharmaceuticals.comwww.trimelpharmaceuticals.com