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Tetra Bio-Pharma Announces Closing of Unit Offering

[Humanist]

Tetra Bio-Pharma Announces Closing of Unit Offering
Tetra Bio-Pharma Inc 
Jul 12, 2019, 10:20 ET

ORLEANS, ON, July 12, 2019 /CNW Telbec/ - Tetra Bio-Pharma Inc. ("Tetra" or the "Corporation") a clinical-stage biopharmaceutical corporation with its primary focus in cannabinoidbased drug discovery and development (TSXV: TBP) (OTCQB: TBPMF), is pleased to announce it has closed its previously announced short form prospectus offering of units of the Corporation, including the exercise in full of the Agents' (as defined below) over-allotment option. A total of 26,833,332 units (the "Units") of the Corporation were sold at a price of $0.30 per Unit, for aggregate gross proceeds of approximately $8,050,000 (the "Offering").

Each Unit consisted of one common share (a "Common Share") in the capital of the Corporation and one Common Share purchase warrant (a "Warrant") of the Corporation. Each Warrant entitles the holder thereof to acquire one Common Share by paying an exercise price of $0.40 for a period of 36 months from the date of closing of the Offering.
The Offering was conducted by a syndicate of agents led by Echelon Wealth Partners Inc. and including Paradigm Capital Inc. (collectively the "Agents") on a commercially reasonable best efforts basis. In consideration of the services provided in connection with the Offering, Tetra paid the Agents a cash fee equivalent to 7% of the gross proceeds from the Offering (which was reduced to 2% in respect of "President's List" subscribers) in addition to 1,654,078 agents' warrants, each of which entitles the holder thereof to acquire one Common Share by paying an exercise price of $0.40for a period of 24 months from the date of closing of the Offering.

The TSX Venture Exchange has conditionally approved the listing of the Warrants issued pursuant to the Offering, subject to fulfillment of standard listing conditions. If listed, the Warrants are expected to commence trading on or about July 16, 2019 under the symbol "TBP.WT.A".
The Corporation intends to use the net proceeds from the Offering primarily to continue the development of its clinical program, including Phase 3 clinical trial expenses, manufacturing and other expenses related to PPP011. The Corporation also intends to use the net proceeds from the Offering for the development of products of Panag Pharma Inc., the Corporation's wholly owned subsidiary and for working capital and general corporate purposes. In addition, the Corporation intends to use the net proceeds from the Offering for optimizing the manufacturing process related to PPP002, for toxicology relating to PPP003, for API manufacturing (HU-308) related to PPP003 and for commercializing the hemp energy drink product of its wholly-owned subsidiary, Tetra Natural Health Inc.
The securities mentioned herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.