XORTX's initial offering closing raises $2.47-million
2024-02-15 07:47 ET - News Release
Mr. Allen Davidoff reports
XORTX RAISES $2.5 MILLION UNDER PROSPECTUS SUPPLEMENT AND CONCURRENT PRIVATE PLACEMENT FOR THE OFFERING OF RIGHTS
XORTX Therapeutics Inc. has made an initial closing for gross proceeds of $2,474,301 under its previously announced offering, including $690,000 in a concurrent private placement of the company in connection with international subscribers.
The initial closing of the non-brokered offering comprised 824,767 common share units at $3.00 per common share unit, with each common share unit consisting of one common share, no par value, and one warrant to purchase one common share at $4.50 per common share for a period of two years for aggregate gross proceeds of $2,474,301, prior to deducting offering expenses. The common shares and warrants contained in the common share units are immediately separable upon issuance. The warrants have an initial exercise price of $4.50 per share, will be immediately exercisable, and may be exercised for two years from the date of issuance, provided, however that, if, the common shares on the TSX Venture Exchange trade at greater than $6.00 for 10 or more consecutive trading days, the warrants will be accelerated and the warrants will expire on the 30th business day following the date of such notice.
In connection with the offering, the company paid finder's fees of $122,208, representing a 5-per-cent finder's fee on certain subscriptions in the offering to qualified finders.
The company anticipates that a second tranche closing under the same terms of the offering will close on or about Feb. 20, 2024.