Grey Matters Health (CSE:GREY, OTCQB:AGNPD, FRA:AGW0) said it will use proceeds from the first tranche of its private placement to advance its Alzheimer's Disease program toward the opening of a US brain-specific neuroimaging clinic, along with general and administrative expenses and working capital.
The Canadian healthcare company closed the first tranche of its previously announced non-brokered private placement, raising gross proceeds of C$600,000.
The tranche consisted of $285,000 from the sale of 712,500 equity units at $0.40 each and $315,000 from unsecured convertible debenture units. Each equity unit includes one common share and one warrant, exercisable at $0.60 for 36 months.
Each debenture unit comprises a $1,000 convertible debenture carrying 10% annual interest, paid semi-annually, and 2,198 warrants exercisable at $0.55 for 36 months. The debentures mature 24 months from closing or conversion and can be converted into common shares at $0.455 apiece.
The company said the offering remains open, with additional tranches expected to close on or before September 30.
