Company also announces plans to merge with Natunola Health Biosciences
By Devika Patel
Knoxville, Tenn., June 30 - Advitech Inc. said it plans a private placement of units to raise at least C$3.5 million.
The company will sell at least 87.5 million units of one common share and a half-share warrant at C$0.04 per unit. Each whole warrant is exercisable at C$0.05 for three years. The strike price is a 25% premium to the June 29 closing share price of C$0.04.
Bloom Burton & Co. and Paradigm Capital Inc. are the agents.
The company also said it has negotiated a merger with Natunola Health Biosciences Inc. to combine the businesses of both companies, creating a personal care and health food ingredients company. In the merger, Advitech will acquire all of Natunola's outstanding shares through an amalgamation between Natunola and 7894716 Canada Inc., a subsidiary of Advitech.
The Natunola shareholders will receive Advitech common shares based on a ratio of 4.75 Advitech shares for each Natunola share. Following the amalgamation, the Natunola shares will be delisted and Natunola will continue its activities as a subsidiary of Advitech.
The private placement is a condition of this merger.
Advitech is a Montreal biotechnology company.
| Issuer: | Advitech Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$3.5 million (minimum)
|
| Units: | 87.5 million (minimum)
|
| Price: | C$0.04
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
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| Warrant strike price: | C$0.05
|
| Agents: | Bloom Burton & Co. and Paradigm Capital Inc.
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| Pricing date: | June 30
|
| Stock symbol: | TSX Venture: AVI
|
| Stock price: | C$0.04 at close June 29
|
| Market capitalization: | C$4.12 million
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