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  • iCo Therapeutics (ICO) intends to offer on a private placement basis 85,294,117 subscription receipts priced at $0.085
  • Aggregate gross proceeds from the offering are expected to be approximately C$7.25 million – an upsize from the originally announced $6 million
  • Proceeds will be placed in escrow and, once released will be used for research, development, and general corporate expenses
  • iCo is a Canadian biotechnology company
  • iCo Therapeutics Inc. (ICO) opened trading at $0.105 per share

iCo Therapeutics (ICO) intends to offer 85,294,117 subscription receipts priced at $0.085.

Aggregate gross proceeds from the offering are expected to be approximately C$7.25 million, representing an upsize from the C$6 million financing announced on March 22, 2021.

Each subscription receipt will entitle the holder to receive one common share.

The proceeds from the offering are to be placed in escrow and, upon satisfaction of the release conditions will be used for research, development, and general corporate expenses.

The common shares underlying the subscription receipts are subject to a hold period expiring 4 months and one day from the date of issuance.

The offering is anticipated to close on or about April 27, 2021, subject to approval by the TSX Venture Exchange.

The agents include Bloom Burton Securities Inc. and Richardson Wealth Ltd. The agents will receive a cash fee equal to 6.0% of the gross proceeds and warrants equal to 6.0% of the number of subscription receipts issued. Each broker warrant will entitle the holder to buy one common share of the company. The term of the broker warrants shall be 24 months from the expected closing date of financing.

Completion of the arrangement is subject to the approval of the Exchange, the Supreme Court of British Columbia and the shareholders of iCo and Satellos. iCo shares will remain halted for trading pending the approval of the arrangement by the Supreme Court of British Columbia, the shareholders and the permission of the Exchange.

Upon closing of the arrangement, Satellos will become a wholly-owned subsidiary of iCo. The amalgamation of iCo and Satellos will be named “Satellos Bioscience Inc”. Upon the conclusion of the financing, holders of the subscription receipts will represent approximately 14 per cent of the issued and outstanding common shares of Satellos Bioscience Inc.

William Jarosz, the CEO of iCo noted,

“We are very pleased by the success and expansion of the private placement. Following the private placement and Arrangement, the company will be better capitalized around a more diverse set of clinical programs in various stages of development with very bright prospects for the future under the leadership of Satellos, a company addressing unmet needs in muscle wasting diseases, including Duchenne Muscular Dystrophy. We are also grateful for the support of existing investors participating in this financing who recognized the value of this new strategic direction for the company.”

Frank Gleeson, the CEO of Satellos, added,

“We view the Financing as an extremely encouraging endorsement of the proposed business combination of iCo and Satellos and the potential for its new technology platform which aims to attack and treat a devastating series of muscle wasting diseases. Together with iCo management, we are focused on completing the Arrangement so that we can begin to execute on what we believe is an exciting plan for the future.”

iCo is a Canadian biotechnology company principally focused on the identification, development and commercialization of drug candidates to treat ocular and infectious diseases.

iCo Therapeutics Inc. (ICO) opened trading at $0.105 per share.

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