Deal’s proceeds to be used for Kane’s research and development program
By Devika Patel
Knoxville, Tenn., Dec. 9 – Kane Biotech Inc. said it completed a C$1.18 million non-brokered private placement of units. The deal priced for C$1.2 million on Oct. 6 and was revised on Nov. 10.
The company will sell 23.5 million units of one common share and one warrant at C$0.05 per unit. Each warrant will be exercisable at C$0.06 for 18 months. The strike price reflects a 20% premium to the Oct. 3 closing share price of C$0.05.
Insider Philip Renaud bought 10 million units for C$500,000, and insider Gord Froehlich bought 2 million units for C$100,000.
The units were originally priced at C$0.06 apiece, with the warrants exercisable for one year at C$0.12, a 140% premium to the Oct. 3 closing share price.
Proceeds will be used for the company’s research and development program and for working capital purposes.
“We are very pleased to be able to close the financing in a very challenging market environment obtaining excellent investor support,” Froehlich, the president and chief executive officer, said in a press release. “This financing provides us with the capital to move our business forward and commercialize our novel animal health technology.”
The Winnipeg, Man., biotechnology company is focused on the development of products to prevent and disperse bacterial biofilms.
| Issuer: | Kane Biotech Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1,175,000
|
| Units: | 23.5 million
|
| Price: | C$0.05
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.06
|
| Agent: | Non-brokered
|
| Pricing date: | Oct. 6
|
| Amended: | Nov. 10
|
| Settlement date: | Dec. 9
|
| Stock symbol: | TSX Venture: KNE
|
| Stock price: | C$0.05 at close Oct. 3
|
| Market capitalization: | C$3.56 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
