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Humaniston Jun 19, 2019 6:56pm
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Tetra Bio-Pharma Inc. Announces Proposed Offering of Units
Tetra Bio-Pharma Inc. Announces Proposed Offering of UnitsTetra Bio-Pharma Inc. Announces Proposed Offering of Units Tetra Bio-Pharma Inc Jun 19, 2019, 18:18 ET OTTAWA, June 19, 2019 /CNW Telbec/ - Tetra Bio-Pharma Inc. ("Tetra" or the "Company"), a biopharmaceutical multifaceted corporation with its primary focus in cannabinoidbased drug discovery and development (TSXV: TBP) (OTCQB: TBPMF), is pleased to announce that it has filed and received a receipt for a preliminary short form prospectus (the "Preliminary Prospectus") in connection with a proposed offering of units ("Units") for minimum gross proceeds of C$3,500,000 and maximum gross proceeds of C$7,000,000 (the "Offering").
Echelon Wealth Partners Inc. (the "Lead Agent") and Paradigm Capital Inc. (collectively with the Lead Agent, the "Agents") will conduct the Offering on a commercially reasonable best efforts basis as the Company's agents for the Offering in each of the provinces of Canada, except Qubec. The Units may also be offered for sale in the United Stateson a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and applicable state laws.
Each Unit will consist of one Class A common share (a "Common Share") in the capital of the Company and one Common Share purchase warrant (a "Warrant") of the Company.
Each Warrant will entitle the holder thereof to acquire one Common Share by paying an exercise price for a period of 36 months from the date of closing of the Offering.
The number of Units to be distributed, the price per Unit and the exercise price of the Warrants will be determined by negotiation between the Company and the Lead Agent prior to the filing of the final short form prospectus relating to the Offering.
If the minimum Offering size is completed, the Company intends to use the net proceeds of the Offering to - continue the development of its clinical program, including Phase 3 clinical trial expenses, manufacturing and other expenses related to PPP011,
- (ii) development of products of Panag Pharma Inc., the Company's wholly owned subsidiary, in connection with its acquisition thereof, and
- (iii) for working capital and general corporate purposes. If the maximum Offering size is completed, the Company intends to use the net proceeds for,
- additionally, (i) optimizing the manufacturing process related to PPP002, (ii) toxicology relating to PPP003, (iii) API manufacturing (HU-308) related to PPP003 and
- (iv) commercializing the hemp energy drink product of its wholly-owned subsidiary, Tetra Natural Health Inc.
In consideration for the services to be rendered by the Agents in connection with the Offering, the Agents shall be entitled to a cash commission equal to 7% of the gross proceeds of the Offering, which shall be payable on the Closing Date. The Agents shall also be granted broker warrants ("Broker Warrants") to acquire that number of Common Shares as is equal to 7% of the number of Units sold in the Offering.
Each Broker Warrant will entitle the holder thereof to acquire one Common Share on payment of an exercise price for a period of 24 months from the issuance date thereof.
Closing of the Offering is expected to occur in July 2019. The Offering is subject to a number of conditions, including, without limitation, the entering into of a definitive agency agreement and receipt of all regulatory approvals, including the approval of the TSX Venture Exchange. There can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering.
A copy of the Preliminary Prospectus, which was filed in each of the provinces of Canada, except Qubec, contains important information relating to the Offering and the Units, and is available on SEDAR at www.sedar.com or by contacting the Lead Agent at ecm@echelonpartners.com. The Preliminary Prospectus is still subject to completion or amendment. There will not be any sale or any acceptance of an offer to buy the Units until a receipt for the final short form prospectus has been issued.
The securities described herein have not been, and will not be, registered under the U.S. Securities Act or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the Company's securities to, or for the account or benefit of, persons in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Tetra Bio-Pharma:
Tetra Bio-Pharma (TSX-V: TBP) (OTCQB: TBPMF) is a biopharmaceutical multifaceted corporation with its primary focus in cannabinoid-based drug discovery and development with a clinical trial program aimed at bringing novel drugs and treatments to patients and their healthcare providers. Tetra Bio-Pharma's subsidiary, Tetra Natural Health, also focuses on the development and commercialization of natural health and self-care products as well as the sale of its hemp energy drinks.
For more information visit: www.tetrabiopharma.com and www.tetranaturalhealth.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. https://www.newswire.ca/news-releases/tetra-bio-pharma-inc-announces-proposed-offering-of-units-810915782.html