Genix Pharmaceuticals raises funds for nutraceutical acquisitions

• Dietary supplement and nutraceutical provider Genix Pharmaceuticals (TSXV:GENX) is set to raise up to C$562,000 in a non-brokered private placement
• The company intends to issue a total of 3.75 million units at a price of 15 cents each
• These units will be comprised of one common share and half of one common share purchase warrant, exercisable at a price of 30 cents
• The proceeds will be used to fund the company’s purchase of rights related to several nutraceutical drugs
• Genix Pharmaceuticals (GENX) is currently down 10 per cent and is trading at 14 cents per share

Dietary supplement and nutraceutical provider Genix Pharmaceuticals (TSXV:GENX) is set to raise up to C$562,000 in a non-brokered private placement.

Under the terms of the placement, the company plans to issue a total of 3.75 million units at a price of 10 cents each. These units will be comprised of one common share and half of one common share purchase warrant.

Each whole warrant will entitle the holder to acquire an additional common share at a price of 30 cents, exercisable over a period of two years from the date of issuance.

However, the expiry date of the warrants may be brought forward should the company’s shares trade at a price equal to or greater than $0.50 for a period of ten consecutive trading days.

The placement will be available to existing shareholders of Genix Pharmaceuticals as of June 23, 2020, but will be subject to a maximum investment of $15,000.

In addition, a commission may be paid to certain parties in connection with certain subscriptions under the placement. This may be satisfied through a cash payment or the issuance of finder’s warrants.

The proceeds raised will be used to fund Genix’s purchase of rights to two nutraceutical drugs, under an agreement dated January 10, 2020, Sucanon and Renochlor.

According to a separate agreement dated March 24, 2020, Genix also intends to acquire the rights to Flu-X. The remaining funds will be used for general working capital and corporate purposes.

While no date has been given regarding the closing of the placement, it remains subject to the approval of the TSX Venture Exchange.

Genix Pharmaceuticals (GENX) is currently down 10 per cent and is trading at 14 cents per share at 12:57pm EDT.