IntelliPharmaCeutics International Inc. (TSX:I) announced a non-brokered private placement of unsecured convertible debentures for gross proceeds of $1,500,000 on January 7, 2013. The debentures will carry an interest of 12% per annum, payable monthly and will be convertible at any time into common shares at a conversion price of $3.00 per common share at the option of the holder and will mature on January 1, 2015. The transaction is expected to close on or about January 10, 2013, subject to the approval of the Toronto sock exchange.

The debentures will not be listed on any market. If the debentures were to be fully converted into common shares of the company, the shares would represent approximately 2.8% of the company's currently issued common shares on a non-diluted basis. As part of the transaction, Isa Odidi, Chief Executive Officer and co-founder, and Amina Odidi, Chief Operating Officer and co-founder, of the company will invest for $1,500,000.