PP Closes.....Let the news flow begin
Hollister closes $7.89-million private placement
2021-03-02 12:18 ET - News Release
An anonymous director reports
HOLLISTER BIOSCIENCES INC. ANNOUNCES CLOSING OF $7.9M PRIVATE PLACEMENT OF SPECIAL WARRANTS, INCLUDING FULL EXERCISE OF AGENTS' OPTION
Further to its news releases of Jan. 21, 2021, and Jan. 20, 2021, Hollister Biosciences Inc. has now closed the brokered private placement of 21,635,094 special warrants of the company at a price of 36.5 cents per special warrant and raised gross proceeds of $7,896,809.31, including 3,825,094 special warrants sold pursuant to the exercise in full of the agents' option granted to the agents (as defined herein).
Eight Capital acted as sole bookrunner and lead agent on behalf of a syndicate of agents including Haywood Securities Inc. and Paradigm Capital Inc. (together with Eight Capital, the "Agents") under the Offering.
Each Special Warrant will be automatically exercisable into units of the Company (the "Units"), as described below. Each Unit consists of one common share of the Company (a "Share") and one-half of one common share purchase warrant (each full warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Share at a price of $0.50 per Share on or before January 2, 2025, being 46 months following the date of closing of the Offering (the "Closing Date").
Each Special Warrant will be automatically exercisable, for no additional consideration, into Units on the date (the "Automatic Exercise Date") that is the earlier of: (i) the date that is three business days following the date on which the Company either (A) obtains a receipt from the applicable securities regulatory authorities (the "Securities Commissions") for a (final) short form prospectus qualifying distribution of the Units underlying the Special Warrants (the "Qualifying Prospectus"); or (B) files a supplement to a (final) short form base shelf prospectus qualifying the distribution of the Units underlying the Special Warrants (the "Qualifying Supplement"), and (ii) July 3, 2021, being the date that is four months and one day after the closing of the Offering.
Notwithstanding the foregoing, in the event the Company has not received a receipt from the Securities Commissions for the Qualifying Prospectus or filed a Qualifying Supplement on or before March 12, 2021, each holder of Special Warrants shall thereafter be entitled to acquire an additional one-half of one (0.5) Warrant for each Unit to be issued to such holder upon the automatic exercise of the Special Warrants, such that each Unit shall be comprised of one Share and one whole Warrant (collectively, the "Penalty Warrants"), without further payment or action on the part of the holder.
In connection with the Offering, the Company paid the Agents $651,084.20 in commissions and advisory fees and issued 1,441,580 special broker warrants (the "Special Broker Warrants") to the Agents. Each Special Broker Warrant is automatically exercisable into