Valeo Pharma arranges $10M bought deal offering $1 per unit
Valeo Pharma Inc. has entered into an agreement with Research Capital Corp. as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, pursuant to which the underwriters has agreed to purchase, on a bought deal basis, 10 million units of the company at a price of $1 per unit for gross proceeds to the company of $10-million.
Each unit shall comprise one common share of the company and one common share purchase warrant of the company. Each warrant shall entitle the holder thereof to purchase one common share at an exercise price of $1.25 for a period of 36 months following the closing of the offering.
The company has granted the underwriters an option to increase the size of the offering by up to an additional number of units, and/or the components thereof, that in aggregate would be equal to 15 per cent of the total number of units to be issued under the offering, exercisable at any time and from time to time up to 30 days following the closing of the offering.
The net proceeds from the offering will be used for working capital and general corporate purposes.
The closing of the offering is expected to occur on or about June 29, 2021, or such later or earlier date as the lead underwriter may determine and is subject to the company receiving all necessary regulatory and stock exchange approvals, including the approval to list the common shares (including the common shares issuable upon exercise of the warrants and compensation warrants) thereon.
The units will be offered by way of a short-form prospectus to be filed in all provinces of Canada pursuant to National Instrument 44-101 (Short Form Prospectus Distributions) and may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law and outside of Canada and the United States on a private placement or equivalent basis.
About Valeo Pharma Inc.
Valeo Pharma is a pharmaceutical company dedicated to the commercialization of innovative prescription products with a focus on respirology, neurodegenerative diseases, oncology and other specialty products. Headquartered in Kirkland, Que., Valeo Pharma has the full capability and complete infrastructure to register and properly manage its growing product portfolio through all stages of commercialization.