Offering at C$0.05 per unit finances plans to reduce company's debt
By Devika Patel
Knoxville, Tenn., July 18 - MedMira Inc. said it has arranged a C$1.5 million private placement of units with investor Andurja Beteiligungen AG.
The company will sell 30 million units of one common share and one warrant at C$0.05 apiece. Each four-year warrant will be exercisable at C$0.10, a 122.22% premium to the July 15 closing share price of C$0.045.
Proceeds will be used to begin a strategic refinance plan that will use compromise debt arrangements intended to reduce the company's overall debt.
"This investment is a first step in restructuring approximately 50% of the company's debt, which represents the largest segment of MedMira's annual expenditures," chief executive officer Hermes Chan said in a press release.
"The plan is intended to enhance our credibility with key stakeholders including financial partners, customers, and suppliers. Together with recent sales wins, including the U.S. Army contract award, increasing orders from China and the ongoing business development initiatives in global markets, this refinancing plan moves the company in the right direction."
MedMira, based in Halifax, N.S., manufactures and markets in vitro flow-through rapid diagnostic tests.
| Issuer: | MedMira Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$1.5 million
|
| Units: | 30 million
|
| Price: | C$0.05
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Four years
|
| Warrant strike price: | C$0.10
|
| Investor: | Andurja Beteiligungen AG
|
| Pricing date: | July 18
|
| Stock symbol: | TSX Venture: MIR
|
| Stock price: | C$0.045 at close July 18
|
| Market capitalization: | C$10 million
|
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