Non-brokered deal negotiated to strengthen company's working capital
By Devika Patel
Knoxville, Tenn., Oct. 7 - Gemoscan Canada, Inc. said it will raise C$84,000 in the second tranche of a C$1 million non-brokered private placement of units on Oct. 12. The deal priced Aug. 17, and the company took in C$620,000 on Sept. 26.
The company is selling 2,857,143 units of one class A share and one half-share warrant at C$0.35 per unit. It sold 1,771,428 units in the first tranche and will sell 240,000 units in the second.
Each whole warrant is exercisable at C$0.55 for two years. The strike price is a 37.5% premium to the Sept. 26 closing share price of C$0.40.
Proceeds will be used to enhance the company's cash on hand and strengthen its working capital position.
The Toronto company owns and markets the Hemocode System, a lifestyle solution using chemiluminescence technology that detects and provides solutions for food intolerances.
| Issuer: | Gemoscan Canada, Inc.
|
| Issue: | Units of one class A share and one half-share warrant
|
| Amount: | C$1 million
|
| Units: | 2,857,143
|
| Price: | C$0.35
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.55
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 17
|
| Settlement dates: | Sept. 26 (for C$620,000), Oct. 12 (for C$84,000)
|
| Stock symbol: | CNSX: GES
|
| Stock price: | C$0.40 at close Sept. 26
|
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