MedX Health Corp. (TSX-V:MDX) said it has closed a private placement financing to raise $1.5 million by issuance of a secured convertible debenture.
Under the terms of the convertible debenture, funding of $1.5 million has been drawn down on the express basis that the funds advanced may be applied specifically and only to expenses notified to and approved by the lender. Interest is payable at 8% per year, payable quarterly.
The convertible debenture is secured by a fixed and floating charge over all assets and undertaking of the borrower, has a term expiring on December 31, 2027, and is subject to customary provisions in the event of default.
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The debenture is convertible into units at the option of the lender. Each unit shall comprise one common share and one share purchase warrant. The conversion price shall be $0.05 per unit if the conversion right is exercised prior to November 18, 2023, which is the first anniversary of the original price reservation date for this placement, and $0.10 per unit thereafter for the remainder of the term.
The exercise price of warrants is $0.20, and the expiration date of any warrants issued shall be December 31, 2027. Any securities issued or issuable on conversion or on exercise of warrants will be subject to a four-month hold period from the original issue date of the convertible debenture.
The sole subscriber under the placement is Forest Lane Holdings Limited, a company controlled by David Hennigar, a director of the company, and accordingly this is a “related party transaction” as such term is defined by Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101).
MedX, headquartered in Ontario, Canada, is a leading medical device and software company focused on skin health with its SIAscopy on DermSecure telemedicine platform, utilizing its SIAscopy technology. SIAscopy is also imbedded in its products SIAMETRICS, SIMSYS, and MoleMate which MedX manufactures in its ISO 13485 certified facility.
SIAMETRICS, SIMSYS, and MoleMate include hand-held devices that use patented technology utilizing light and its remittance to view suspicious moles and lesions up to 2mm beneath in a pain-free, non-invasive manner. Its patented software then creates real-time images for physicians and dermatologists to evaluate all types of moles or lesions within seconds.
The company's products are cleared by Health Canada, the US Food and Drug Administration, the Therapeutic Goods Administration and Conformite Europeenne for use in Canada, the US, Australia, New Zealand, the European Union, Brazil and Turkey.
Contact the author at jon.hopkins@proactiveinvestors.com