Cardiol Therapeutics Inc. (CRDL) has agreed to increase the size of its previously announced $15 million bought deal offering.
Pursuant to the upsized deal terms, the underwriters, led by Raymond James Ltd. as sole bookrunner, have agreed to purchase 6,112,000 units of the company at a price of $3.60 per unit. Aggregate gross proceeds from the offering will total approximately $22 million.
Each unit comprises one common share and one-half common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share for $4.60 for a period of 36 months following the closing of the offering.
The underwriters have been granted an over-allotment option to purchase up to the equivalent of 15 per cent of the number of units sold pursuant to the offering. The underwriters can elect to exercise the over-allotment option for units, warrants, or any combination thereof.
Net proceeds will be used to advance the company’s research and clinical development programs, fund additional commercial product development, and for general corporate purposes.
The offering is expected to close on or about May 12, 2021, and is subject to the approval of the Toronto Stock Exchange, and the entering into of an underwriting agreement between the company and the underwriters.
Cardiol Therapeutics is a clinical-stage biotechnology company focused on anti-inflammatory therapies for the treatment of cardiovascular disease.
Cardiol Therapeutics (CRDL) is down 13.78 per cent, trading at C$3.38 per share at 9:45 am ET.