XPhyto Therapeutics Corp said it has completed its non-brokered private placement as well as its previously-announced non-brokered convertible debenture unit offering, raising total gross proceeds of C$7 million.
The company noted it intends to use the proceeds from each of these private placements to complete its previously-announced acquisition of 3a-diagnostics GmbH, as well as for corporate development and general working capital purposes.
The equity offering involved the issuance of 4.5 million XPhyto common shares, at a price of $1 per share, for total gross proceeds of C$4.5 million, while the convertible debenture offering raised gross proceeds of C$2.5 million and gives the holders the option to convert the amount held into common shares at a conversion price of $1.25, which includes two million share purchase warrants exercisable into shares at an exercise price of $1.50 for a period of two years.
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The debenture will mature and be repayable on the date that is two years from the closing date, and bear interest at a rate of 8% per annum until maturity, which will be calculated and payable semi-annually on the last day of June and December in each year.
XPhyto said conversion of the debentures may be forced at the option of the company if the 15-day volume weighted average price of the shares on the Canadian Securities Exchange exceeds 250% per share of the exercise price.
It added that its chief financial officer participated in the equity offering by purchasing a total of 25,000 shares.
All securities issued or issuable in connection with closing of the equity offering and the debenture offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation, expiring March 26, 2022.
XPhyto Therapeutics is a bioscience accelerator focused on next-generation drug delivery, diagnostic, and new active pharmaceutical ingredient investment opportunities with research and development operations in North America and Europe. It is currently focused on regulatory approval and commercialization of medical products for European markets.
Contact Sean at sean@proactiveinvestors.com