Aequus Pharmaceuticals Inc. (CVE:AQS) said it has closed a non-brokered private placement of 6,666,666 units of the company at a price of $0.15 each, for aggregate gross proceeds of $1,000,000 with Marc Lustig, the entrepreneur recently appointed a director of the company.
The company confirmed that it intends to use the proceeds of the private placement for general corporate and working capital purposes, including commercial and marketing activities and supporting on-going business development.
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Each unit in the placement consisted of one common share of the company and one-half non-transferrable common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at an exercise price of $0.25 for a period of twenty-four months following the transaction closing date. The units will be subject to a four-month hold period expiring June 27, 2021.
Aequus first announced the non-brokered private placement on February 12 as part of a direct equity investment by Lustig, who it said then had concurrently agreed to join the company’s board of directors.
Lustig currently serves as a director at cannabis companies Cresco Labs and Pharmacielo Ltd, he is also chairman of both cannabis investment firm Trichome Financial Corp and medical cannabis group IMC Cannabis.
In connection with his board appointment, the company said it planned to grant Lustig 350,000 incentive stock options on February 15, the effective date of his appointment, which will be exercisable at the closing price on Friday 12, February for a term of eight years.
Aequus Pharmaceuticals is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. The company has grown its sales and marketing efforts to include several commercial products in ophthalmology and transplant.
Contact the author at jon.hopkins@proactiveinvestors.com