Valeo Pharma Inc. (TSX:VPH, OTCQB:VPHIF) has closed a non-brokered private placement offering, raising gross proceeds of $3.92 million.
The company also secured a loan agreement with a related party for $580,000 at an interest rate of 12%, taking the amount of funds raised to $4.5 million.
"This financing will strengthen our working capital position and enable us to support the market share gains of our core products in our key therapeutic areas," CEO Steve Saviuk said in a statement.
In the private placement, the company sold 13,999,997 units at a price of $0.28 per each. Investissement Québec subscribed $2.0 million while $1.421 million came from insiders.
"We are pleased to support Valeo Pharma in their growth strategy," Guy LeBlanc, president and CEO of Investissement Québec added. "The life sciences industry is a key sector of our economy and we will keep supporting and assisting our entrepreneurs in achieving their goals, both in Québec and around the world."