Non-brokered deal finances manufacturing and testing of orlistat drug
By Devika Patel
Knoxville, Tenn., Sept. 7 – M Pharmaceutical Inc. said it raised C$1,973,785 in the first tranche of a C$2 million non-brokered private placement of three-year convertible debentures. The deal priced on Aug. 25.
The 10% convertibles may be converted into common shares at C$0.075 per share, a 31.82% discount to the Aug. 24 closing share price of C$0.11.
Interest will be prepaid in units of one common share and one half-share warrant at C$0.08 per unit.
Each whole warrant will be exercisable at C$0.08 for two years. The strike price represents a 27.27% discount to the Aug. 24 closing share price.
Proceeds will be used to arrange manufacturing and testing of the company’s reformulated orlistat drug, starting the regulatory process around the same, and for general administrative expenses.
The biomedical technology company is based in Vancouver, B.C.
| Issuer: | M Pharmaceutical Inc.
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| Issue: | Convertible debentures
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| Amount: | C$2 million
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| Maturity: | Three years
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| Coupon: | 10%, prepaid in units of one common share and one half-share warrant at C$0.08 per unit
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| Conversion price: | C$0.075
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| Warrants: | One per unit upon payment of interest
|
| Agent: | Non-brokered
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| Pricing date: | Aug. 25
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| Settlement date: | Sept. 7 (for C$1,973,785)
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| Stock symbol: | CSE: MQ
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| Stock price: | C$0.11 at close Aug. 24
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| Market capitalization: | C$1.57 million
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| Units
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| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.08
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