Ortho Regenerative Technologies (CSE:ORTH) Inc told investors it closed an oversubscribed non-brokered private placement of units for gross proceeds of $3.2 million, with approximately $560,000 of insiders' subscriptions.
The company said the net proceeds from the placement will be used to initiate enrollment and fund the advancement of its ORTHO-R Phase I/II US clinical trial for rotator cuff tear repair, as well as for working capital and general corporate purposes.
"We appreciate the vote of confidence demonstrated once again by the significant participation of our existing shareholders and insiders and are thankful for their continued support", the company’s president and CEO Philippe Deschamps said in a statement.
"We have already proceeded with site initiation visits in two of our US clinical trial centers and now look forward to advance patients' enrolment as quickly as possible with the runway provided by this private placement", he added.
Under the placement, Ortho Regenerative said it issued 16 million units at $0.20 each, with each unit consisting of one Class A share and one common share purchase warrant. Each warrant will be exercisable into one share for $0.35 per warrant share for 24 months from closing, the company added.
However, if the closing price of the shares is greater or equal to $0.50 for ten consecutive trading days, it said it may give notice to the warrant holder, at any time after the statutory four-month hold period, that it must exercise its remaining warrants within a period of 30-days from the date of receipt of the notice.
Contact the author at stephen.gunnion@proactiveinvestors.com