Each whole warrant will entitle the holder thereof to purchase one common share of the company at a price of $0.25 per share for a period of 36 months from the closing date of the offering. As a percentage of the total number of issued and outstanding common shares prior to this transaction, the common shares being issued in this transaction represent approximately 22.5%.
Completion of the offering is subject to a number of customary closing conditions, and receipt of all necessary regulatory approvals, including the approval of the Toronto stock exchange.
The placement agent will be paid a commission of seven percent of the gross proceeds of the offering, paid in cash on the closing date. The securities issued under the offering will have a hold period under Canadian law of four months from the closing.
Net proceeds of the offering will be used to manufacture product for the launch of the flu test partnered with 3M Medical and the cardiovascular line partnered with Roche Diagnostics, as well as the day-to-day operations of the company.