Business
Kalytera Announces $5 Million Private Placement of Convertible Debenture Units
Kalytera Announces $5 Million Private Placement of Convertible Debenture Units.
About this update from Claritas Pharmaceuticals Inc.
[{"type":"text","content":"\n\n /NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES/\n SAN FRANCISCO and TEL AVIV, Israel, Nov. 22, 2017 (GLOBE NEWSWIRE) --  Kalytera Therapeutics, Inc. (TSX VENTURE:KALY) (OTCQB:KALTF) (the \"Company\" or \"Kalytera\") announced today that it has entered into an agreement with Echelon Wealth Partners Inc. (“Echelon” or the \"Agent\"), to lead a brokered best efforts private placement of up to $5,000,000 aggregate principal amount of convertible debenture units (the \"Convertible Debenture Units\") at a price of $1,000 per Convertible Debenture Unit (the “Offering”). Each Convertible Debenture Unit will consist of: (i) $1,000 principal amount of 9.0% secured convertible debentures (the \"Convertible Debentures\"); and (ii) 3,846 common share purchase warrants (each whole warrant, a \"Warrant\") of the Company (representing 50% warrant coverage on each Convertible Debenture).   The Convertible Debentures will bear interest from the date of closing at 9.0% per annum, payable semi-annually in arrears on June 30, 2018 and thereafter semi-annually on the last day of June and December in each year and will mature two years following the closing of the Offering (the \"Maturity Date\"). The Convertible Debentures will be senior secured obligations of the Company and rank pari passu in right of payment of principal and interest with all other Convertible Debentures issued under the Offering and all previously existing secured indebtedness of the Company. The Agent will have an option to sell up to 750 additional Convertible Debenture Units, each having the same terms as the Convertible Debenture Units above. The Convertible Debentures will be convertible at the option of the holder into common shares of the Company (the “Common Shares”) at any time prior to the close of business on the Maturity Date at a conversion price of $0.13 per Common Share (the \"Conversion Price\"). Beginning on the date that is four months and one day following the Closing Date (as hereinafter defined), the Company may force the conversion of all of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on 30 days prior written notice should the daily volume weighted average trading price of the Common Shares be greater than $0.75 for...