Post by
RazeKreations on May 19, 2021 10:54am
Microbix Announces Closing of Offering and Private Placement
Microbix Announces Closing of Offering and Private Placement
$6.9 Million of Gross Proceeds Received
MISSISSAUGA, May 19, 2021 – Microbix Biosystems Inc. (TSX: MBX, OTCQB: MBXBF, Microbix®), a life
sciences innovator and exporter, announces it has closed its previously-announced bought-deal public
offering (the “Offering”) and concurrent private placement (the “Placement”).
The co-lead bookrunners and underwriters of the Offering, iA Private Wealth Inc. and Bloom Burton
Securities Inc. (the “Underwriters”), have purchased the full Offering, including all of the 15%
overallotment option, for a total of 9,583,334 units (“Units”), at a price of $0.60 per Unit for aggregate
gross proceeds of $5,750,000. The Company also closed its concurrent Placement of 1,916,666 Units for
gross proceeds of $1,150,000, also upsized by 15% from the previously announced $1,000,000.
Each Unit is comprised of one common share of the Company (a "Common Share") and one-half of one
common share purchase warrant (each whole warrant being a "Warrant"). Each Warrant is exercisable to
acquire one common share (a "Warrant Share") for a period of 24 months following the closing date of
the Offering at an exercise price of $0.80 per Warrant Share, subject to adjustment in certain events.
The Company paid the Underwriters a cash commission equal to 7.0% of the gross proceeds of the
Offering and has issued 670,833 underwriters’ warrants (the “Underwriters’ Warrants”). Each
Underwriters’ Warrant is exercisable for one Common Share at $0.60 per Common Share for a period of
24 months following the closing of the Offering. No underwriting fees or commissions were paid in relation
to the Placement.
Gross proceeds from the Offering and the Placement totaled $6,900,000. Net proceeds from the Offering
and Placement are expected to be approximately $6,150,000 after fees and expenses. The net proceeds
from the Offering will be used primarily towards expansion-related initiatives, while those of the
Placement will be directed to general corporate purposes.
Directors and officers of Microbix (collectively, the “Insiders”) participated in the Offering for 708,333
Units ($425,000) and in the Placement for 685,000 Units ($411,000). Participation of Insiders in the
Placement constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101
– Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and the policies of the TSX.
Microbix is relying on the exemptions from the formal valuation and minority approval requirements
contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that participation in the Placement by
Insiders will not exceed 25% of the fair market value of its market capitalization. Microbix did not file a
material change report at least 21 days prior to the completion of the Placement since the existence of
any Placement or Insiders’ participation therein was not determined at that time.