Cloud DX (TSX-V:CDX, OTCQB:CDXFF) Inc has announced its intention to complete a non-brokered private placement of up to 1,750 secured convertible debentures at a price of $1,000 each for aggregate gross proceeds of up to $1.75 million.
The company said it intends to use the net proceeds of the offering for inventory and general working capital purposes.
The debentures in the offering will mature on the date that is 12 months from the date of issuance and shall bear interest at a simple rate of 18% per annum, payable upon the earlier of the conversion date or the maturity date.
The principal amount of the debenture is convertible, at the election of the holders, into common shares in the capital of the company at a conversion price of C$0.15 per common share at any time prior to the maturity date. The debentures will be secured against all present and after-acquired personal property of the company under a general security agreement.
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In connection with the offering, the company said it may pay finder's fees in cash or securities or a combination of both, as permitted by the policies of the TSX Venture Exchange.
The closing of the offering is expected to occur in one or more tranches, with the first tranche expected to close on or about June 24, 2022.
The convertible debentures and any securities issuable upon conversion will be subject to a statutory hold period of four months and one day from the date of issuance.
The offering is subject to final approval by the TSX Venture Exchange.
The convertible debentures will be offered and sold by private placement in Canada under exemptions from the prospectus requirements under National Instrument 45-106 Prospectus Exemptions, and in certain other jurisdictions on a basis that does not require the qualification or registration of the securities issued under the offering.
Cloud DX (TSX-V:CDX, OTCQB:CDXFF)'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