Valeo Pharma Inc. (CSE:VPH) has announced a non-brokered private placement of up to 4,000 unsecured non-convertible debentures units at a price of $1,000 each for maximum gross proceeds of $4 million.
The company said each debenture unit will consist of one unsecured non-convertible debenture of the company in the principal amount of $1,000 each and 200 Class “A” share purchase warrants. Each warrant will entitle the holder to purchase one Class “A” Share of the company at an exercise price of $1.60 at any time up to 24 months following the closing date of the offering.
The debentures in the offering will mature at the latest 9 months after the closing and will bear interest at a rate of 8% per annum from the date of issue, payable in cash, semi-annually in arrears.
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The company said the net proceeds of the offering will be used for working capital and general corporate purposes.
“We are appreciative of the continued support from insiders and investors close to the Company in this placement”, said Steve Saviuk, Valeo’s chief executive officer in a statement.
“This financing will strengthen our balance sheet at a time of three important product launches for Valeo, Enerzair Breezhaler, Atectura Breezhaler and Redesca. Commercialized through two distinct sales forces, these products are key drivers to our growth over the coming years," he added.
Closing of the private placement is expected to occur on or about April 23, 2021, and is subject to regulatory approval including that of the CSE. The company said it may pay finder’s fees on the non-insider portion of the private placement, in compliance with applicable securities laws.
All securities issued in connection with the private placement will be subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation, it added.
Valeo is a Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory Diseases, Neurology, Oncology and Hospital Specialty Products.
Headquartered in Kirkland, Quebec, the company has all the required capabilities and the full infrastructure to register and properly manage its growing product portfolio through all stages of commercialization.
Contact the author at jon.hopkins@proactiveinvestors.com