I wonder if Nept is going to participate OR let their ownership dilute ? Depending how many new shares are issued it could take the ownership of Acasti from 48% to under 25% (i am assuming warrants and over allotment). Has Neptune made any comments to anyone ?
Acasti Pharma Inc. ("Acasti", "Acasti Pharma" or the "Corporation") (NASDAQ:ACST)(TSX VENTURE:ACST) today announced that it has received a receipt for a preliminary short form prospectus (the "Preliminary Prospectus") in connection with a proposed offering of units ("Units") of Acasti for minimum gross proceeds of CAD$6,500,000 (the "Minimum Offering") and maximum gross proceeds of CAD$10,000,000 (the "MaximumOffering" and, collectively with the Minimum Offering, the "Offering").
The Offering will be conducted on a "commercially reasonable best efforts" basis through an agency syndicate (collectively, the "Agents") led by Echelon Wealth Partners Inc. (the "Sole Bookrunner").
The number of Units to be issued and the price of each Unit will be determined at the time of pricing of the Offering. Each Unit will consist of one Class A share in the capital of the Corporation (a "Common Share") and a Common Share purchase warrant ("Warrant"). The number of Warrants issuable will be determined by the Corporation in consultation with the Agents. The final pricing of the Units, including the exercise price of the Warrants, and determination of the total number of Units to be sold will be determined in the context of the market at the time of entering into an agency agreement for the Offering. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the acceptance 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.
The Corporation has also granted the Agents an option to offer for sale additional Units to cover over-allotments and for market stabilization purposes (the "Over-Allotment Option"), which will allow the Agents to arrange for purchasers to acquire up to an additional 15% of the number of Units initially sold under the Offering. The Over-Allotment Option will be exercisable, in whole or in part, at any time until noon on the 30th day following closing of the Offering.
In consideration for the services to be rendered by the Agents in connection with the Offering, the Agents will receive a fee consisting of cash and broker warrants.
If the Minimum Offering is completed, the Corporation intends to use the net proceeds from the Offering to fund its operations through December 31, 2017 to complete its manufacturing scale-up and the planning for the Phase 3 clinical trial for CaPre® (omega-3 phospholipid), Acasti's lead product candidate. If the Maximum Offering is completed, the Corporation intends to use the net proceeds to additionally initiate the Phase 3 clinical trial and begin its patient enrollment. Net proceeds are also planned to be used for intellectual property expansion, business development activities, general and administrative expenses, and working capital.
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