- Innocan Pharma (CSE:INNO) has completed its previously announced short form prospectus offering for gross proceeds of approximately C$5.1 million
- The company issued a total of 28.4 million units at a price of 18 cents each
- These units are comprised of one common share in the capital of the company and one common share purchase warrant
- Under the offering, Mackie Research Capital and Canaccord Genuity led a syndicate of agents, which included Haywood Securities and PI Financial
- The proceeds will be used to fund research and product development, sales and marketing, and general operating expenses
- Innocan Pharma (INNO) is currently steady at 16 cents per share
Innocan Pharma (CSE:INNO) has completed its previously announced short form prospectus offering for gross proceeds of approximately C$5.1 million.
Under the terms of the offering, the company issued a total of 28.4 million units at a price of 18 cents each. These units were comprised of one common share and one common share purchase warrant.
Each warrant entitles the holder to acquire an additional common share at a price of 25 cents, exercisable until June 10, 2023.
However, should Innocan’s shares trade at or above a price of 50 cents after June 10, 2021, the expiry date of the warrants may be brought forward.
The offering was completed with the assistance of Mackie Research Capital, as sole bookrunner, and Canaccord Genuity, both of which served as lead agents to a syndicate that also included Haywood Securities and PI Financial.
These agents have been granted an over-allotment option to increase the size of the offering by up to 15 per cent.
Notably, Tamar Innovest, Innocan’s largest shareholder, and a company managed by Ralph Bossino, a director of Innocan, subscribed for a total of 3.88 million units under the offering for an aggregate amount of $700,000.
As such, Tamar Innovest now controls 34 million of Innocan’s common shares, representing roughly 19.6 per cent of the total issued and outstanding amount.
According to today’s announcement, Innocan plans to use the proceeds raised under the offering to fund its research activities and the development of new products. A portion will also be attributed to sales and marketing initiatives, as well as general operating, administrative and corporate expenses.
Innocan Pharma (INNO) is currently steady and is trading at 16 cents per share at 3:31pm EDT.