Medexus Pharmaceuticals Inc (CVE:MDP) (FRA:P731) is upsizing its previously announced financing to $28.3 million, it announced Wednesday.
The increase is due to "strong investor demand," the pharmaceutical company told shareholders.
Medexus announced Tuesday the launch of a bought-deal public offering to raise about $20 million.
READ: Medexus Pharmaceuticals strikes licensing agreement to commercialize treosulfan in the US
In a statement, the company said it intends to use the net proceeds to fund certain payments owed to medac GmbH under the commercialization and supply agreement.
Raymond James Ltd and Stifel GMP are co-lead underwriters and joint bookrunners on behalf of a syndicate of underwriters will now purchase 3,984,078 units at $7.10 each.
Each unit will consist of one common share and one-half purchase warrant. And each warrant will entitle the holder to purchase one share at a price equal to $10 for a period of 24 months following the closing date.
In the event that the volume-weighted average trading price of the shares for 10 consecutive trading days exceeds $14, the company may within 10 business days of the occurrence of such event, deliver a notice to the holders of warrants -- accelerating the expiry date to the date that is 30 days following the date of such notice.
The company has granted the underwriters an over-allotment option exercisable for a period of 30 days following the closing date to purchase at the issue price up to a number of an additional units, shares, and warrants as is equal to 15% of the number of units sold pursuant to the offering.
The offering is expected to close on or about February 23, 2021.
--Updated with increased offering size--
Angela Harmantas contributed to this report
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