Helix BioPharma Corp (TSE:HBP) (OTCMKTS:HBPCF) (FRA:HBP) has announced an agreement in which it will receive up to C$10 million in financing from New York based institutional investment fund Lind Global Macro Fund, LP through the issuance of convertible securities.
Each convertible security issued will have a two-year term from the date of issuance and will accrue a simple interest rate obligation of 8.75% per year on the amount funded.
The first tranche of C$3.5 million is expected to be issued on or around May 12, with the second tranche of up to an additional C$6.5 million available to be received thereafter.
READ: Helix BioPharma advancing efforts to combat killer cancers with unique immuno-oncology therapies
Lind will be entitled to convert the securities into Helix BioPharma common shares at a conversion price equal to 85% of the five-day trailing volume-weighted average price of the shares before the date a notice of conversion is provided to the company by Lind. The agreement stipulates certain restrictions on the maximum face value of each of the convertible securities that may be converted in any particular month.
As well, Helix has the option to buy back 66.7% of the convertible securities in cash at any time with no penalty, subject to the option of Lind to convert up to one-third of the face value of the applicable convertible security into common shares at the time of such buy-back.
Lind will also be entitled to accelerate its conversion right to the full amount of the face value or demand repayment of the face value in cash upon a default and other designated events as set out in the agreement.
In connection with the first tranche, Helix BioPharma has agreed to issue 1,957,056 common share purchase warrants exercisable into company shares for a period of 48 months at an exercise price of C$1.0283 per share.
The company has also agreed to pay Lind a 3% commitment fee of the amount funded under the first and second tranche, which is due upon closing of each such tranche.
Helix BioPharma is developing unique therapies in the field of immune-oncology for the prevention and treatment of cancer based on its proprietary technological platform DOS47.
Contact Sean at sean@proactiveinvestors.com