MedX Health Corp. (TSX-V:MDX) has said it is proposing to complete a private placement financing to raise up to $1.5 million through the issuance of one or more secured convertible debentures.
Under the terms of the proposed placement, which is subject to acceptance by the TSX Venture Exchange and any other relevant regulatory or other consents and approvals, funding of up to a total of $1.5 million will be advanced on the express basis that funds will be applied specifically and only to the expenses notified to and approved by the lenders.
Interest will be payable at 8% per year, payable quarterly and the convertible debenture will be secured by a fixed and floating charge over all assets and undertaking of the borrower, will have a term expiring on December 31, 2027 and will be subject to customary provisions in the event of default.
READ: MedX Health closes private placement financing to raise $1.5 million by issuance of a secured convertible debenture
The debenture will be 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, provided that if the conversion right is exercised after November 18, 2023, then the conversion price for the remainder of the term shall be $0.10 per unit.
The exercise price of the warrants comprised in units issuable on conversion shall be $0.20.
The subscriber for the proposed convertible debenture will enter into an intercreditor agreement with each other and with Forest Lane Holdings Limited, which already holds a $1.5 million convertible debenture on identical terms, so that priority and entitlement will be shared amongst all the holders on a 'pari passu' basis.
Any securities issued or issuable will be subject to a four-month hold period from the original issue date of the convertible debenture.
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.
These products are cleared by Health Canada, the US Food and Drug Administration, the Therapeutic Goods Administration and Conformité Européenne for use in Canada, the US, Australia, New Zealand, the European Union, Brazil and Turkey.
Contact the author at jon.hopkins@proactiveinvestors.com