Helix BioPharma Corp said it has closed a private placement financing for gross proceeds of $1,001,000 from the issuance of 3,850,000 common shares at a price of $0.26 each.
The company said it intends to use the net proceeds of the private placement for working capital and advancing its L-DOS47 drug development program.
Helix BioPharma noted that Jerzy Wilczewski, an insider of the company, subscribed for all 3,850,000 of the common shares issued under the private placement. As a result of the closing of the private placement, Wilczewski owns, or exercises control or direction over, 23,467,153 common shares, representing approximately 15.94% of the issued and outstanding common shares of the company on a non-diluted basis, or approximately 24.95% on a partially diluted basis, assuming the full exercise of the 17,659,500 common share purchase warrants that Wilczewski owns or exercises control or direction over.
In a statement, Wilczewski commented: "I strongly believe in the new strategy and look forward to further advancements of the company's L-DOS47 drug platform."
"We are very appreciative of Mr Wilczewski's continued support," added Dr Slawomir Majewski, Helix's interim chief executive officer.
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Helix BioPharma also announced that it has applied to the Toronto Stock Exchange (TSX) to introduce an Incentive Plan to temporarily reduce the exercise price of its issued and outstanding common share purchase warrants that are not held by insiders of the company, or non-arm's length parties, including all such warrants expiring on March 31, 2022, to May 12, 2026, from their current respective exercise prices to a reduced exercise price of $0.26.
Proceeds received by the company from the exercise of eligible warrants, if any, will be used for working capital and advancing the company's L-DOS47 drug development program. The terms and conditions of the Incentive Program and the method of exercising eligible warrants under the program will be set forth in a letter which will be delivered to each holder of eligible warrants at their registered address. New certificates representing the eligible warrants will not be issued in connection with the Incentive Program.
The eligible warrants include an aggregate of 49,806,469 warrants that if exercised at the Incentive Exercise Price will result in the company receiving gross proceeds of up to $12,949,682. The company said there can be no assurances as to the number of eligible warrants that will be exercised under the Incentive Program or if any eligible warrants will be exercised under the program at all.
In connection with the proposed adoption of the Incentive Program, the company also announces that it is extending the exercise period of a total of 3,680,000 warrants, all of which are held by arm's length parties, until April 28, 2022. The extended warrants were issued under a private placement that closed in April 2015, have a current exercise price of $1.54 (prior to the contemplated adjustment pursuant to the Incentive Program) and an expiry date of March 31, 2022, and represent approximately 2.55% of the company's issued and outstanding common shares.
The expiry date of the extended warrants is being extended in order to provide the holders of such warrants with the opportunity to exercise their extended warrants under the terms of the Incentive Program. The warrant extension is subject to the approval of the TSX.
Helix BioPharma is a clinical-stage biopharmaceutical company developing unique therapies in the field of immune-oncology for the prevention and treatment of cancer-based on its proprietary technological platform DOS47.
Contact the author at jon.hopkins@proactiveinvestors.com