Healthcare company Sona Nanotech (SONA) has closed its private placement after raising just under C$2.26 million in gross proceeds.
The company first announced plans to conduct a non-brokered capital raise on December 3. At the time, Sona Nanotech intended to raise only $2 million, through the issue of 2 million units at $1.00 each.
However, the financing was fully subscribed within days of the first announcement, demonstrating considerable interest from investors. This prompted the company to increase the offering, and resulted in Sona Nanotech issuing 2,259,200 units at $1.00 each.
Each unit from the private placement contained one common share in Sona, and half of a common share purchase warrant.
Each whole warrant is exercisable into one extra common share, for $1.25 per common share. The warrants are exercisable within 24 months of the financing’s 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 for the prototype.
Sona Nanotech is currently working with several potential partners to secure a clinical trial for its test. Any trial will require a sponsoring institution, a principal investigator, a study protocol, relevant medical ethics review board approval, and Health Canada Investigational Testing Division approval.
Some funds from the financing will also go towards helping Sona Nanotech pursue a European regulatory self-certification CE Mark declaration, and general working capital purposes. As it just so happens, the company’s CE Marking process in Europe has begun, with the appointment of Obelis.
Sona Nanotech is up 0.93 per cent and is trading for $1.09 per share, as of 12:36pm EST.