TORONTO, Jan. 4, 2021 /CNW/ - QuestCap Inc. ("QuestCap" or the "Company") (NEO: QSC) (OTC: COPRF) (FRA: 34C1) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp., on behalf of a syndicate of underwriters (collectively the "Underwriters"), pursuant to which the Underwriters have agreed to purchase on a bought deal private placement basis, 20,000,000 units of the Company ("Units") at a price of C$0.25 per Unit (the "Issue Price"), for aggregate gross proceeds of C$5,000,000 (the "Offering").
Each Unit will consist of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of C$0.40 for a period of 24 months from the Closing Date, subject to a Warrant acceleration right exercisable by the Company if, at any time following the date that is four months and one day from the Closing Date, the daily volume weighted average trading price of the Company's common shares on the NEO Exchange is greater than C$0.80 for the preceding 10 consecutive trading days.
The Company plans to use the net proceeds from the Offering to expand its testing capacity, for the repayment of existing debt and for general corporate purposes. The Offering is scheduled to close on or about January 26, 2021 (the "Closing Date"), and is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including the approval of the NEO Exchange.
The securities issued under the Offering will be subject to a statutory hold period of four months and one day following the Closing Date.
The securities to be offered pursuant to the Offering 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 or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About QuestCap Inc.
QuestCap Inc. (NEO:QSC; OTC:COPRF; FRA:34C1) seeks out disruptive technologies, ground-breaking innovations, and exclusive partnerships to help combat COVID-19 and generate remarkable risk-adjusted returns for investors. Specifically, QuestCap offers investors a diversified investment in the COVID-19 medical space across three areas: prevention, detection, and treatment.
QuestCap has a team of renowned global medical and business advisors that have developed a proprietary business strategy to capitalize on high-margin opportunities in the COVID-19 space. This panel includes prominent immunologist Dr. Lawrence Steinman and Dr. Glenn Copeland, who has 45 years of experience in orthopaedic treatment, foot and ankle care, and sports medicine.
QuestCap's primary focus is the sale of COVID-19 IgG/IgM antibody tests authorized in the United States by the U.S. Food and Drug Administration under an Emergency Use Authorization for use by authorized laboratories. This is achieved largely through two acquisitions: 100% of Collection Sites and an indirect 28% interest in Sanaty IPS S.A.S. ("Sanaty"), a Colombian company. Collection Sites is setting up a series of COVID-19 testing sites across the United States with appointments and payments handled through the online portal www.testbeforeyougo.com. Sanaty is setting up a series of full-service medical clinics offering a complete COVID-19 testing solution.