BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) has announced its intention to raise proceeds of up to $13.5 million in a non-brokered private placement of convertible notes.
The biotech company said the notes will have a term of 24 months from date of issuance and will bear interest at 12% per annum.
As well, the notes and accrued interest will be convertible at the option of the holder into common shares of the Issuer at a conversion price that is equal to the closing market price of the company's common shares on the date of conversion less a discount of 20% but, in any event, not less than $0.24 per share or more than $0.75 per share.
BioHarvest noted that investors who purchase more than US$2 million of the offering will also receive a warrant exercisable for a period of two years from issuance for each $0.30 invested, with the warrants being exercisable for a period of 24 months to buy a common share at $0.30 per common share.
Furthermore, holders of convertible notes who elect to convert within the first 12 months will be entitled to receive an early conversion warrant for each $0.30 converted, entitling them to purchase a common share at $0.30 per share for a period from the date of issuance to the date that is 24 months from the original date of issuance of the convertible notes.
In the event that BioHarvest completes an equity financing of not less than C$10 million during the first three months that the convertible notes are outstanding, a noteholder will have the option to immediately convert the principal and accrued interest of convertible notes into common shares at the price per share of the equity financing but in any event not less than $0.20.
BioHarvest is a biotech company that has developed a patented bio-cell growth platform technology capable of growing the active and beneficial ingredients in fruit and plants, at an industrial scale, without the need to grow the plant itself.
Contact Sean at sean@proactiveinvestors.com