MedX Health Corp said it is proposing a non-brokered private placement to accredited investors of up to $4 million by the issuance of up to 80 Convertible Loan Notes, each with a face value of $50,000.
The convertible notes will bear interest at 8% per year, payable half-yearly, and will mature on December 31, 2026. They may be converted, at the option of the holder, into units at $0.10 per unit at any time until the maturity date.
Each unit will be comprised of one fully paid common share and one-half of a share purchase warrant. Each whole warrant will be exercisable to purchase one further common share at the price of $0.15, exercisable for a period expiring on the maturity date.
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Additionally, the company will have the right to force redemption of any convertible notes then outstanding, on the date that is thirty days after the date of the notice, exercisable at any time after January 1, 2025, and provided that the company's common shares have closed at a price of $0.30 or above for thirty consecutive trading days immediately preceding the date of the notice exercising the right, subject to the right of the noteholders to exercise the conversion right prior to the redemption date.
Closing of the placement, which is subject to a minimum subscription of $1 million, will be subject to receipt of subscriptions and a number of other conditions, including without limitation the receipt of all relevant regulatory and Stock Exchange approvals or acceptances.
The company said qualified agents may receive commissions in respect of subscriptions introduced by them by way of cash equal to 8% of funds so introduced, and issuance of agent's warrants calculated by reference to 8% of the funds from subscribers introduced by such agent. Each agent's warrant, which is non-transferable, will be exercisable at the price of $0.09 to acquire a unit comprised of one common share and one-half of a non-transferable agent's share purchase warrant.
Each whole agent's share purchase warrant will be exercisable to purchase one common share at the price of $0.18. The agent's warrants, and any underlying agent's share purchase warrants, will expire, if unexercised, on the date that is two years subsequent to the date of issue of the original agent's warrants.
Headquartered in Ontario, Canada, MedX is a leading medical device and software company focused on skin health with its SIAscopy on DermSecure telemedicine platform, utilizing its SIAscopy technology.
SIAscopy is also imbedded in its SIAMETRICS, SIMSYS, and MoleMate products, which MedX manufactures in its ISO 13485 certified facility. SIAMETRICS, SIMSYS, and MoleMate include hand-held devices that use patented technology utilizing light and its remittance to view suspicious moles and lesions up to 2mm beneath in a pain-free, non-invasive manner.
MedX's patented software then creates real-time images for physicians and dermatologists to evaluate all types of moles or lesions within seconds. These products are cleared by Health Canada, the US Food and Drug Administration, the Therapeutic Goods Administration and Conformite Europeenne for use in Canada, the US., Australia, New Zealand, the European Union, Brazil and Turkey.
Contact the author at jon.hopkins@proactiveinvestors.com