Grey Matters Health (CSE:GREY, OTCQB:AGNPD, FRA:AGW0) said on Wednesday it plans to raise C$1 million through a non-brokered private placement, with proceeds earmarked for the opening of its first US brain-specific neuroimaging clinic as part of the company's Alzheimer's disease program.
The Canadian healthcare company said it will sell units at C$0.40 each, with each unit comprising one Class A common share and one common share purchase warrant.
Each warrant entitles the holder to purchase one additional common share at C$0.60 for a period of 24 months from the date of issuance.
The proceeds will be used to advance the company's Alzheimer's disease program toward the launch of its first brain-specific neuroimaging clinic in the United States, with the remainder allocated to general and administrative costs and working capital.
The warrants include an acceleration clause. Should the volume-weighted average trading price of Grey Matters' common shares exceed C$0.80 for 10 consecutive trading days, the company may, within 10 business days of that event, serve notice to warrant holders, compressing the expiry date to no fewer than 30 days from the date of such notice. Any warrants unexercised at the end of the accelerated exercise period would expire automatically.
The company expects to close the offering in tranches by May 21.