Ka­lytera ar­ranges $450,000 pri­vate place­ment

Stockwatch Daily - - FRONT PAGE - Mr. Robert Far­rell re­ports

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

( KALY) Shares: 281,085,328

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