Cloud DX (TSX-V:CDX, OTCQB:CDXFF) Inc said it has completed its previously-announced brokered convertible debenture/equity private placement financing, raising gross proceeds of C$2,192,000 by issuing 2,192 company units at a price of $1,000 per unit.
Cloud DX noted it intends to use the net proceeds from the offering for sales, marketing, research and development, and working capital requirements.
Each unit was comprised of a $1,000 principal amount unsecured convertible debenture plus 1,430 common share purchase warrants, entitling the holder to acquire one Cloud DX common share, at a price of $0.50 per share, for a period of 24 months from the date of the private placement closing.
READ: Cloud DX disrupts the healthcare market with homegrown solutions
The debentures, meanwhile, will mature on the date that is 36 months from the date of closing of the private placement and will bear interest at a simple rate of 10% per year. The principal amount of the debentures may be converted by the holder into Cloud DX common shares at a conversion price of C0.35 per share at any time before the maturity date.
Echelon Wealth Partners Inc, who acted as the sole agent for the offering, was paid a cash commission equal to 8% of the offering’s gross proceeds and was issued a number of non-transferable common share purchase warrants equal to 8% of the gross proceeds raised from the offering. Each agent's warrant entitles the holder to acquire one Cloud DX common share at an exercise price of $0.35 per share for a period of 24 months from the private placement’s closing date.
All securities issued are subject to a four-month hold period ending February 1, 2022, and the offering remains subject to final approval from the TSX Venture Exchange.
Cloud DX’s Connected Health remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable aging in place and deliver hospital-quality post-surgical care.
Contact Sean at sean@proactiveinvestors.com