Cloud DX (TSX-V:CDX, OTCQB:CDXFF) Inc said it has closed a non-brokered private placement of 180 units of the corporation at a price of $1,000 per unit, for gross proceeds of $180,000.
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 in the private placement 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.
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As consideration for services rendered in connection with the offering, Cloud DX said it paid to certain registered brokers a cash commission in the amount equal to $14,400 (8% of the gross proceeds of the offering); and issued to certain registered brokers 41,142 non-transferable common share purchase warrants. Each broker warrant entitles the holder thereof 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 August 15, 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.
Cloud DX's 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 at home. Providers partnering with Cloud DX achieve better healthcare and patient outcomes, reduce the need for hospitalization/rehospitalization, and reduce healthcare delivery costs through more efficient use of resources.
Cloud DX is the co-winner of the Qualcomm Tricorder XPRIZE, a 2021 Edison Award winner, a Fast Company "World Changing Idea" finalist, and one of "Canada's Ten Most Prominent Telehealth Providers."
Contact the author at jon.hopkins@proactiveinvestors.com