Kalytera arranges $450,000 private placement
KALYTERA THERAPEUTICS Inc. is proceeding with a private placement under which it intends to sell up to an aggregate of six million common shares of the company and six million common share purchase warrants for aggregate gross proceeds of up to $450,000 (representing a subscription of 7.5 cents per each unit consisting of one common share and one warrant).
Each warrant will be exercisable to acquire one common share at an exercise price of 10 cents per common share for a period of two years following the closing date, subject to customary adjustments in certain events, provided that if, at any time following the date that is four months and one day from the closing date, the daily volume weighted average trading price of the common shares equals or exceeds $1 for any 10 consecutive trading days, the company may, on prior written notice, accelerate the expiry date of the warrants to the date that is 30 days following the date of such notice. Any unexercised warrants shall thereafter automatically expire.
The offering is being facilitated by Alere Financial Partners, a division of Cova Capital Partners LLC. In connection with the services to be performed by the agent, the agent is entitled to receive a cash commission equal to 8 per cent of the aggregate gross proceeds of the offering payable upon completion of the offering. In addition, the agent will also be granted a number of broker warrants to acquire that number of common shares equal to 8 per cent of aggregate number of common shares sold in the offering. Each broker warrant will be exercisable to acquire one common share at an exercise price of 10 cents per common share for a period of two years following the closing date, subject to customary adjustments in certain events, provided that the broker warrants shall be subject to the same acceleration terms as the warrants.
The securities to be issued under the offering will be offered pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. The Common shares, the warrants, the broker warrants and any common shares issuable upon exercise thereof will be subject to a statutory hold period lasting four months and one day following the closing date.
The company intends to use the net proceeds of the offering for working capital and
general corporate purposes. Closing of the offering is expected to occur on or about Jan. 15, 2019. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange. The private placement of 11,532,000 common shares and 11,532,000 common share purchase warrants of the company previously announced on Dec. 18, 2018, will close on or about Jan. 15, 2019. The TSX Venture Exchange has conditionally approved this previously announced private placement. About Kalytera Therapeutics Inc.
Kalytera Therapeutics is pioneering the development of cannabinoid therapeutics. Through its proven leadership, drug development expertise and intellectual property portfolio, Kalytera Therapeutics seeks to establish a leading position in the development of CBD medicines for a range of important unmet medical needs, with an initial focus on GVHD and the treatment of acute and chronic pain.
We seek Safe Harbor.
Ronald Peter Erickson, Robert Edward Farrell, Gary Leong, Jeffrey Paley, Seth Yakatan
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