Algernon closes $2.81-million private placement
2021-03-05 19:38 ET - News Release
Mr. Christopher Moreau reports
ALGERNON PHARMACEUTICALS ANNOUNCES INCREASE AND CLOSE OF PRIVATE PLACEMENT
Algernon Pharmaceuticals Inc. has increased and completed its previously announced non-brokered private placement of units, and has issued an aggregate of 11,260,040 units at the price of 25 cents per unit, raising gross proceeds of $2,815,010.
Each unit consists of one Class A common share and one share purchase warrant. Each whole warrant will entitle the holder to acquire one additional share at a price of 40 cents per share until March 5, 2023.
At any time after July 5, 2021, and prior to the expiry date, the warrants are subject to accelerated expiry in the event the daily volume weighted average trading price of the common shares equals or exceeds 80 cents on the Canadian Securities Exchange (or such other exchange on which the common shares may be traded), for 10 consecutive trading days (the "triggering event"), in which case, the company may accelerate the expiry date of the warrants by giving notice via news release within 10 days of the triggering event to the holders thereof and, in such case, the warrants will expire on the 30th day after the date on which the news release is disseminated by the company.
In connection with the offering, the company has paid cash commissions in the aggregate amount of $161,400, being 8 per cent of the aggregate proceeds raised from the sale of units to purchasers introduced by eligible finders. In addition, the company has issued 645,600 finders' warrants, being 8 per cent of the number of units sold under the offering to purchasers introduced by such finders. Each finder's warrant entitles the holder to purchase one unit at a price of 40 cents per unit until March 5, 2023.
All securities issued in connection with the offering are subject to a statutory hold period of four months, expiring July 5, 2021, in accordance with applicable securities legislation. The net proceeds of the offering will be used to finance the company's general corporate purposes.