Empower Clinics Inc said it has closed its previously announced private placement of units at a price of $0.20 each and unsecured convertible debenture units at $1,000 per debenture unit, raising aggregate gross proceeds of $3 million.
The Vancouver, British Columbia-based company said it intends to use the net proceeds raised under the financing to advance its growth plans, and for working capital purposes and general administrative expenses.
"I'm both proud and honoured that we closed this financing in the first week of 2022," said Steven McAuley, CEO and Chair of the Board of Empower. "My team and I worked hard over the holiday season to deliver results for our shareholders and set the stage for this financing. The speed of closing reflects investor confidence in our team, vision and results to date."
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Empower reminded investors that insiders of the company, including McAuley, purchased an aggregate of 1.75 million units under the financing. McAuley also entered into a securities lending agreement with a purchaser of debenture units (the borrower) under which, immediately following the closing, the borrower will provide debentures in the principal amount of $1.2 million to McAuley as collateral for six million unrestricted shares, to be lent by McAuley to the borrower.
The company paid aggregate fees of $328,500 in connection with the financing, of which $113,000 was satisfied by the issuance of 565,000 units, and issued certain eligible finders an aggregate of 1,592,500 finder's warrants, each of which is exercisable into one common share at a price of $0.20 per share for two years.
Empower Clinics is an integrated healthcare company that is aggressively growing its clinical and digital presence across North America. The company's Health & Wellness and Diagnostics & Technology business units are positioned to positively impact the integrated health of its patients, while simultaneously providing long-term value for its shareholders.
Contact the author at stephen.gunnion@proactiveinvestors.com