Cloud DX (TSX-V:CDX, OTCQB:CDXFF) Inc said it has closed a non-brokered private placement of 260 units at a price of $1,000 per unit, for gross proceeds of $260,000.
The company said it intends to use the net proceeds from the offering for sales, marketing, research and development and working capital requirements.
Each unit is comprised of a C$1,000 principal amount unsecured convertible debenture and 1,430 common share purchase warrants of the corporation.
The debentures will mature on January 27, 2025, and shall bear interest at a simple rate of 10% per annum. The principal amount of the debentures may be converted at the election of the holder into common shares in the capital of the company at a conversion price of C$0.35 each at any time prior to the maturity date.
Each warrant entitles the holder to acquire one common share of the corporation at a price of C$0.50 each at any time prior to 4.30pm Toronto Time on January 27, 2024.
READ: Cloud DX says granted new patent for Pulsewave 2.0 Vital Sign Monitor
As consideration for services rendered in connection with the offering, Cloud DX has paid to certain registered brokers a cash commission in the amount equal to $13,000 (5% of the gross proceeds of the offering); and issued to certain registered brokers 37,142 non-transferable common share purchase warrants.
Each broker warrant entitles the holder to acquire one common share at an exercise price of $0.35 each for a period of 24 months from the date of closing of the private placement.
In accordance with applicable Canadian securities laws, all securities issued pursuant to the offering will be subject to a four-month hold period ending July 19, 2022.
The offering remains subject to final approval from the TSX Venture Exchange.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, US persons absent registration or an applicable exemption from the registration requirements.
Accelerating virtual healthcare, Cloud DX is on a mission to make healthcare better for everyone. Its Connected Health remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable aging in place, and deliver hospital-quality post-surgical care in the home.
The corporation's partners achieve better healthcare and patient outcomes, reduce the need for hospitalization or re-admission, and reduce healthcare delivery costs through more efficient use of resources. In 2021, Cloud DX became an exclusive partner to Medtronic Canada.
Contact the author at jon.hopkins@proactiveinvestors.com