- StageZero Life Sciences Ltd. (SZLS) signed a $25 million capital commitment agreement with GEM Global Yield LLC SCS (GGY)
- It will use the proceeds for working capital and general corporate purposes
- As part of the agreement, StageZero will issue up to 13.4 million warrants to GGY
- The companies will also complete an initial offering transaction which will close at the same time as the agreement
- StageZero Life Sciences Ltd. (SZLS) is down 6.25 per cent, trading at $0.07 per share as of 3:35 p.m. EST
StageZero Life Sciences (SZLS) has signed a $25 million capital commitment agreement with GEM Global Yield LLC SCS (GGY).
It will use the proceeds raised from the investment for working capital and general corporate purposes. More specifically, to expand collaborations with employers, clinics, healthcare systems, and involved insurers.
StageZero has the right to draw down under the agreement for a three-year term and will issue draw-down notices to GGY when applicable.
As part of the agreement, StageZero will issue up to 13.4 million warrants to GGY, issued one-for-one against the first 13.4 million shares purchased by GGY.
The warrants have an exercise price of $0.14 per common share and can be exercised for five years.
On the first anniversary of the agreement, if the market price of StageZero’s common shares is less than 90 per cent of the then-current exercise price of the warrants, the exercise price of the warrants will adjust to 105 per cent of the market price of the common shares at that time.
StageZero is also required to pay GEM Investments America LLC a 2.00 per cent commitment fee equal to $500,000 within one year of the agreement.
Alongside this agreement, the companies will complete an initial offering transaction which will close at the same time as the agreement.
For this, StageZero will draw down $280,000 by issuing its common shares for $0.05918 per share. Each common share will include one warrant with an exercise price of $0.14 apiece.
StageZero Life Sciences Ltd. (SZLS) is down 6.25 per cent, trading at $0.07 per share as of 3:35 p.m. EST.
