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Kalytera Announces Closing of First Tranche of Private Placement of Common Shares and Common Share Purchase Warrants
Kalytera Announces Closing of First Tranche of Private Placement of Common Shares and Common Share Purchase Warrants.
About this update from Claritas Pharmaceuticals Inc.
[{"type":"text","content":"\n SAN FRANCISCO and TEL AVIV, Israel, Sept. 16, 2019 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSX VENTURE: KALY and OTCQB: KALTF) (the “Company” or “Kalytera”) is pleased to announce the closing of the first tranche of its private placement, for 10,946,423 common shares of the Company and 10,946,423 common share purchase warrants for aggregate gross proceeds of C$505,084.38. Alere Financial Partners, a division of Cova Capital Partners LLC, acted as agent and as compensation will receive a cash commission equal to C$30,410.47 and will be issued 675,788 warrants bearing the same terms as those issued in the offering.  All securities issued in the offering are subject to a hold period expiring on January 14, 2020 in accordance with applicable securities laws. The offering remains subject to final TSX Venture Exchange (“TSXV”) approval. The first tranche closing is part of a larger private placement transaction (the “Private Placement”) under which the Company proposes to raise up to approximately CDN $1.5 million (USD $1.14 million) pursuant to the issuance of units, each consisting of one common share and one common share purchase warrant, at a price of C$0.045 per unit, pursuant to the grant of a discretionary waiver by the TSXV of its C$0.05 minimum pricing requirement.  As previously disclosed, Mr. Farrell, the Company’s Chief Executive Officer, and Mr. Erickson, a member of the Company’s board of directors, invested at a price of C$0.05 per unit (as will any other non-arm’s length party that participates in the Private Placement), instead of the C$0.045 per unit price made available to all other investors. As previously disclosed in more detail in the Company’s press release dated September 11, 2019, proceeds of the Private Placement will be used to fund preparatory work for initiation of the Company’s Phase 3 clinical registration study for its lead product development program evaluating cannabidiol (“CBD”) for the prevention of acute graft versus host disease (“GVHD”). Proceeds will also be used to augment the Company’s working capital as it enters into discussions with potential corporate partners for its GVHD program. Existing Shareholder Participation Subject to applicable securities laws, the Pr...