News - private placement VANCOUVER, British Columbia, Nov. 30, 2018 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), is pleased to announce that it will be completing a private placement financing of convertible debentures (“Convertible Debentures”) for gross aggregate proceeds of CDN$2,000,000 (the “Private Placement”). Each Convertible Debenture will bear interest at a rate of 8.0% per annum and have a two-year maturity date (“Maturity Date”). In addition, each Convertible Debenture will be unsecured and will be convertible, at the option of the holder, into common shares of the Company (“Common Shares”) at a price of $1.25 per Common Share.
The Company will have the right to repay and cancel the Convertible Debentures at any time prior to the Maturity Date at a price equal to 105% of the principal amount of the Convertible Debentures then outstanding plus accrued and unpaid interest thereon. In addition, the Company will have the right to compel the conversion of the Convertible Debentures in the event that the daily volume weighted average trading price of the Common Shares exceeds $2.50 per Common Share for 10 consecutive trading days.
Each placee will also be granted one Common Share purchase warrant (“Warrants”) for each Common Share underlying the Convertible Debentures. Each Warrant will be exercisable into one Common Share at an exercise price of $1.50 for a period of 24 months.
The Company notes that all of the placees are insiders of the Company.
The Company anticipates that the Private Placement will complete on or before December 4th, 2018.