The whole NR:
Mr. Chris Schnarr reports
BIOEXX CLOSES CONVERTIBLE DEBENTURE OFFERING
BioExx Specialty Proteins Ltd. has closed its previously announced convertible debenture offering, for gross proceeds of $2,925,000.
Subscribers of the debentures are provided with subordinated security over the personal property of the company and its subsidiary, BioExx Proteins of Saskatoon Inc. The debentures bear interest at a rate of 12 per cent per annum and will be convertible into units at a conversion price of 10 cents per unit, with each unit being composed of one common share in the capital of the company and one-half of one share purchase warrant, with each whole warrant being exercisable into one common share, and having a three-year term and an exercise price of 15 cents per share. The debentures mature three years from their date of issuance and may be repaid by the company at any time following the first 12 months of their issuance, subject to the conversion rights of debenture holders.
The offering was non-brokered, and proceeds of the offering will be used for working capital and general corporate purposes. On closing, certain finders in the offering received a cash commission equal to 5 per cent of the total proceeds sourced by each such finder and finder's warrants entitling such finders to acquire a total of 282,500 common shares at an exercise price of 10 cents per share for a period of two years from the date of issuance.
"We are pleased to have completed this private placement in difficult market conditions, which will provide us with necessary financial resources as we move through the next stages of our business plan execution. The significant insider participation in this offering is reflective of the confidence of the board and management in a successful outcome and a strong future for BioExx," said BioExx chief executive officer Chris Schnarr.
Insiders of the company purchased $716,000 of the offering. The placement is considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The placement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25 per cent of the company's market capitalization.
We seek Safe Harbor.