Sona Nanotech’s (SONA) previously announced private placement for up to C$2 million in proceeds is now fully subscribed.
The healthcare company first announced its plans to conduct the non-brokered $2 million financing last week. Through the placement, Sona Nanotech will issue up to two million units in the company, at a price of $1 per unit.
Each placement unit will contain one common share in the company, as well as one half of a common share purchase warrant. Every warrant can be used to buy one extra common share in Sona Nanotech, for an exercise price of $1.25 per share.
The warrants will be exercisable for the 24 months following the financing’s closing date. With the private placement fully subscribed so soon, the company expects to close the financing very shortly.
All securities which are issued through the capital raise will be subject to a customary hold period of four months and one day, starting from the closing date.
Sona Nanotech will primarily use the proceeds to advance its rapid COVID-19 antigen nasal pharyngeal test, and saliva-based prototype version. The funds will help to produce further clinical trial data for the nasal pharyngeal test, and help the company to pursue further development of clinical trial validation work for the prototype.
Some of the money may also go towards helping Sona Nanotech pursue a European regulatory self-certification CE Mark declaration, and general working capital purposes.
Sona Nanotech is up 8.42 per cent and trading for $1.03 per share, as of 2:53pm EST.