Voyageur Pharmaceuticals Ltd (TSX-V:VM, OTC:VYYRF) said it has increased the maximum size of the non-brokered private placement it announced on December 8 and December 23, 2022, due to strong investor demand.
The offering will now be for 17,142,857 units at 7 cents each for gross proceeds of up to $1.2 million, up from 9,285,714 units for gross proceeds of $650,000.
The gross proceeds received from the offering will be used to advance Voyageur's project, the company said.
READ: Voyageur Pharmaceuticals closes first tranche of C$650,000 private placement
Each unit in the offering is comprised of one common share and one common share purchase warrant of Voyageur. Each warrant entitles the holder to purchase one common share for $0.12 expiring 24 months from the date of issuance.
The other terms of the offering remain unchanged excepting that Voyageur may now pay a cash commission or finder's fee to qualified non-related parties of up to 8% of the gross proceeds of the offering (up to $96,000) and issue broker warrants equal to up to 8% of the number of units sold in the offering (up to 1,371,428 broker warrants). Each broker warrant will entitle the holder to acquire one common share at a price of $0.07 each for a period of one year from the date of issuance.
The offering funds are estimated to be allocated in the following order:
- Commissions & Offering Costs $60,000
- SmoothX & Corporate Marketing $250,000
- FDA EMA Testing $250,000
- Legal $340,000
- Auditing fees $50,000
- Frances Creek 2,000 tonne engineering $60,000
- Deposit for Pharma GMP facility purchase $100,000
- Corporate G&A $280,000
- TOTAL $1,200,000
Completion of the offering is subject to regulatory approval including, but not limited to, the approval of the TSX Venture Exchange. The common shares, warrants and broker warrants issued will be subject to a four-month hold period from the date of the closing of the offering.
The company said it intends to complete one or more additional closings on or before January 23, 2023.
Voyageur is focused on the development of barium and iodine Active Pharmaceutical Ingredients (API) and high-performance cost-effective imaging contrast agents for the medical imaging marketplace. Voyageur's goal is to fully integrate the barium and iodine contrast market by producing its own minerals of barium and iodine.
The company's business plan is to initially generate cash flow from operations using third-party GMP pharmaceutical manufacturers in Canada and validate the products for regulatory agencies globally. Then transitioning into a high-margin domestic manufacturer of radiology drugs. Voyageur has plans to build carbon-neutral infrastructure to become 100% self-sufficient across all manufacturing activities.
Voyageur owns a 100% interest in three barium sulphate (barite) projects including the Frances Creek property, suitable in grade for the pharmaceutical marketplace, with additional interests in a high-grade iodine, lithium & bromine brine project located in Utah, USA
Contact the author at jon.hopkins@proactiveinvestors.com