RE:RE:Just increased the Bought Deal financing to $15 million
Convalo Health International, Corp. ("Convalo" or the "Company") (TSX VENTURE:CXV), an acquisition-oriented company focused on rolling up the US addiction rehabilitation market, is pleased to announce that in connection with its previously announced bought deal private placement offering (the "Offering"), it has entered into an amendment agreement with Mackie Research Capital Corporation as lead underwriter and including Beacon Securities Limited (the "Underwriters"), to upsize the Offering from $7,500,000 to $15,000,000. The Underwriters have agreed to purchase, on a bought-deal basis, 37,500,000 units (the "Units") of the Company at a price of $0.40 per Unit, for gross proceeds to the Company of $15,000,000. Each Unit will consist of one (1) common share (a "Common Share") in the capital of Convalo and one (1) warrant (a "Warrant") of Convalo. Each Warrant entitles the holder thereof to acquire one Common Share for an exercise price of $0.50 per Common Share for a period of 36 months following closing of the Offering (the "Closing"). The expiry date of the Warrants may be accelerated by Convalo at any time following the six-month anniversary of the Closing and prior to the expiry date of the Warrants if the volume-weighted average trading price of the Common Shares is greater than $0.60 for any 20 consecutive trading days. The Company has granted the Underwriters an option (the "Underwriters' Option") to increase the size of the Offering by up to an additional 15% of the total number of Units to be issued under the Offering, at any time on or before 48 hours prior to the Closing. The Offering is scheduled to close on or about the week of April 20, 2015 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under the Offering will have a hold period of four months and one day from the Closing. The net proceeds from the Offering will be used by Convalo for acquisition purposes and general working capital.