Cloud DX (TSX-V:CDX, OTCQB:CDXFF) Inc revealed that it plans to complete a non-brokered private placement of up to 1,800 secured convertible debentures at a price of $1,000 per convertible debenture for aggregate gross proceeds of up to $1.8 million.
The North American disruptor in virtual care based in Kitchener, Ontario and Brooklyn, New York said the debentures will mature on the date that is 18 months from the date of issuance and shall bear interest at a simple rate of 18% per annum, payable on 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 at a conversion price of C$0.16 per share at any time prior to the maturity date. The debentures will be secured against all present and after-acquired property, following a general security agreement.
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Cloud DX (TSX-V:CDX, OTCQB:CDXFF) plans to use the net proceeds for inventory and general working capital purposes. In connection with the offering, Cloud DX said it may pay finder's fees in cash or securities or a combination of both.
The offering is expected to close in one or more tranches, with the first tranche expected to close on or about October 31, 2022, said the company.
The convertible debentures and any securities will be subject to a standard statutory hold of four months and one day from the date of issuance. The offering is subject to final approval from the TSX Venture Exchange. The convertible debentures will be offered and sold by private placement in Canada.
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 ageing in place and deliver hospital-quality post-surgical care.
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