Valeo Pharma Inc said that it has entered into an agreement with Desjardin Capital Market —the sole underwriter— for a private placement of $10 million aggregate principal amount of convertible unsecured debentures of the company, at a price of $1,000 per debenture.
Alongside the offering, Investissement Québec has committed to a concurrent private placement of $10 million of convertible unsecured debentures issuable on the same terms as those issuable pursuant to the offering, resulting in aggregate gross proceeds from the offering and concurrent private placement of $20 million.
Investissement Québec is a company that supports the creation and development of businesses of all sizes through investments and adapted financial solutions.
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Valeo told its investors that the net proceeds of the offering and concurrent private placement will be used to support commercial efforts related to the recently launched products.
In addition, the proceeds will be used to reimburse the non-convertible debentures previously issued by the company, maturing on January 31, 2022, and July 10, 2022. They will also be used for working capital and general corporate purposes; and supporting an upcoming TSX listing application.
The debentures will mature on December 31, 2024, and will accrue interest at the rate of 12% per annum, payable quarterly beginning on March 31, 2022, the company said.
Valeo Pharma has granted the underwriters an option to purchase up to an additional $1.5 million aggregate principal amount of debentures, exercisable at any time up to 48 hours prior to the closing of the offering.
The closing of the offering and concurrent private placement is expected on December 9, 2021.
Valeo Pharma, a Kirkland, Quebec-headquartered company, is a pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on respirology, neurodegenerative diseases, oncology, and other specialty products.
Contact Ritika at ritika@proactiveinvestors.com