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Marvel Biosciences Announces Closing of First Tranche of Debenture Offering
Calgary, Alberta--(Newsfile Corp. - February 24, 2023) - Marvel Biosciences Corp. (TSXV: MRVL) ...
About this update from Marvel Biosciences Corp
[{"type":"text","content":"Marvel Biosciences Announces Closing of First Tranche of Debenture OfferingCalgary, Alberta--(Newsfile Corp. - February 24, 2023) - Marvel Biosciences Corp. (TSXV: MRVL) (\"Marvel\" or the \"Corporation\") announced today that it has completed the closing of the first tranche of the previously announced non-brokered private placement of debentures (\"Debentures\") for gross proceeds of $1,000,000 (the \"Private Placement\"), subject to final approval of the TSX Venture Exchange.The Debentures bear interest at the rate of eight percent (8%) per annum, payable annually and mature on the date that is three years from the closing date. Interest may be repaid in cash or common shares of the Corporation (\"Common Shares\"), at the option of the Corporation, based on the 20 day volume weighted average trading price of the Common Shares on the TSX Venture Exchange, calculated 3 days prior to the payment date, subject to the minimum price permitted by the TSX Venture Exchange (and subject to approval of the TSX Venture Exchange). The Debentures are convertible at the holder's option into Common Shares at a conversion price of $0.12 per Common Share. The Corporation can force conversion of the Debentures into Common Shares if the volume weighted average trading price of the Common Shares on the TSX Venture Exchange is at least $0.60 per Common Share for a minimum of 10 consecutive trading days (whether or not trading occurs on such days).All securities issued in connection with the Private Placement are subject to a hold period that expires on June 25, 2023. The net proceeds from the Private Placement will be used to fund pre-clinical, Good Lab Practice (GLP) testing and toxicology experiments prior to clinical trials, in addition to support general corporate and working capital requirements of the Company. It is anticipated that Paleo will close a second tranche of the offering on or about March 30, 2023.A company controlled by J. Roderick Matheson (\"Matheson\"), a director and officer of Marvel acquired a Debenture in the principal amount of $500,000 pursuant to the Private Placement and, accordingly, the Private Placement is a related party transaction for the purposes of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (the \"Related Party Policies\"). Marvel has determined that exemptions from the various requireme...