Valeo Pharma Inc (CSE:VPH) (OTCQB:VPHIF) has entered into a C$10 million bought-deal public offering of its units in an agreement with Research Capital Corporation.
The deal will see Research Capital, as lead underwriter and sole bookrunner, acquire 10,000,000 units of the company at a price of $1.00 per unit.
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According to the statement: “Each unit shall be comprised of one common share of the company and one common share purchase warrant of the company,” with each warrant entitling the holder to purchase one common share at an exercise price of $1.25 for a period of 36 months following the closing of the offering.
Valeo will also allow the underwriters an opportunity to acquire an additional number of units equal to 15 percent of the total number of units to be issued under the offering. This caveat is exercisable up to 30 days following the closing of the deal.
The offering is expected to close at the end of June, at which point the $10 million proceeds will be used for working capital and general corporate purposes.
Valeo Pharma is a Quebec-based pharmaceutical company committed to the commercialization of innovative prescription products in Canada, with a special focus on treating respiratory diseases, neurodegenerative diseases, oncology and hospital specialty products.
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