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Mednow Announces Senior Secured Convertible Debenture Financing of up to $3,000,000 Led by Gravitas Securities
Mednow Announces Senior Secured Convertible Debenture Financing of up to $3,000,000 Led by Gravitas Securities.
About this update from Mednow Inc.
[{"type":"text","content":"\nMednow Inc. (TSXV: MNOW) (OTCQX: MDNWF) (\"Mednow\" or the \"Company\"), Canada’s on-demand virtual pharmacy, is pleased to announce that it has engaged Gravitas Securities Inc. (the “Agent”) to offer on a \"commercially reasonable efforts\" basis senior secured convertible debentures of the Company (each, a “Convertible Debenture”) at a price of $1,000 per Convertible Debenture for gross proceeds to the Company of up to $3,000,000 (the “Offering”). The Company has further agreed to grant the Agent an option to increase the size of the Offering by up to 15% (the “Over-Allotment Option”), exercisable in whole or in part at any time for a period of 30 days after closing of the Offering.\n\nEach Convertible Debenture will bear interest at a rate of 12.0% per annum and mature thirty-six (36) months following the date of issuance (the “Maturity Date”). The principal amount of each Convertible Debenture (the “Principal Amount”) will be convertible into 2,857 units (each a “Unit”) at a conversion price of $0.35 per Unit (the “Conversion Price”) at the option of the holder at any time prior to the earlier of: (i) the close of business on the Maturity Date; and (ii) the business day immediately preceding the date specified by the Company for the redemption of the Convertible Debentures.\n\nEach Unit will be comprised of one Class A common share in the capital of Mednow (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.45 per Common Share for a period of 36 months from the date of issuance thereof, subject to applicable policies of the TSX Venture Exchange (the “TSXV”).\n\nAll interest accrued on the Convertible Debentures will be payable in units (“Interest Units”) (or if the holder is a Non-Arm’s Length Party (as such term is defined in the policies of the TSXV), Common Shares) at a price equal to the daily volume weighted average trading price of the Common Shares on the TSXV for the consecutive five (5) trading days of the Common Shares on the TSXV preceding the date of the interest payment (the “VWAP”) or such other price as is required by the TSXV. The in...