Helix BioPharma Corp said it has closed a private placement financing for net proceeds of $2,002,000 from the issuance of 7,700,000 common shares at a price of $0.26 per common share.
The company noted that Jerzy Wilczewski, an insider of the company, subscribed for all the 7,700,000 common shares issued under the private placement.
As a result of the closing of the private placement, Wilczewski now owns or exercises control or direction over 31,167,153 common shares, representing approximately 19.85% of the issued and outstanding common shares of the company on a non-diluted basis, or approximately 27.15% on a partially diluted basis, assuming the full exercise of the 15,739,500 common share purchase warrants that Wilczewski owns or exercises control or direction over.
"In the last few months, I have increased my investment by another 3M (million) as I have great confidence and trust in the new team and their strategy," Wilczewski said in a statement.
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Artur Gabor, the recently appointed CEO of Helix commented: "We would like to thank Mr Wilczewski for his strong support and confidence in Helix's revised strategy, execution plans and team. We look forward to continued efforts toward this exciting program."
The company said it intends to use the net proceeds of the private placement for working capital and advancing the company's L-DOS47 drug development program.
The purchase of common shares by Wilczewski is considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions.
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 our proprietary technological platform DOS47.
Contact the author at jon.hopkins@proactiveinvestors.com