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NuGen Announces Closing of Private Placement of $10 million Secured Convertible Debentures
Toronto, Ontario--(Newsfile Corp. - September 20, 2024) - NuGen Medical Devices Inc. (TSXV: NGMD)...
About this update from Nugen Medical Devices Inc
[{"type":"text","content":"NuGen Announces Closing of Private Placement of $10 million Secured Convertible DebenturesToronto, Ontario--(Newsfile Corp. - September 20, 2024) - NuGen Medical Devices Inc. (TSXV: NGMD) (the \"Company\" or \"NuGen\") a leading developer of needle-free devices to administer therapeutics subcutaneously, is pleased to announce that, further to its press release dated August 15, 2024, Sol-Millennium Medical HK Limited (\"Sol-M\") and Nature Health Development (Hong Kong) Co. Limited (\"Nature Health\") have completed their strategic investment in NuGen through the acquisition of an aggregate C$10,000,000 principal amount secured convertible debentures (the \"Convertible Debentures\") in the Company's non-brokered private placement of Convertible Debentures (the \"Offering\"). The Company intends to use the proceeds from the Offering for working capital purposes, expansion of production and fulfillment of increasing sale purchase orders globally. The Convertible Debentures mature on the date that is five (5) years from the closing of the Offering (the \"Maturity Date\") and bear interest at a rate of 12% per annum payable on the Maturity Date in arrears. The Convertible Debentures are secured by a first ranking security interest in all of the present and after-acquired property and assets of the Company pursuant to a general security agreement entered into among the Company, Sol-M and Nature Health which includes standard default conditions customary for a transaction of this nature. At any time prior to the close of business on the last business day immediately preceding the Maturity Date, the holders have the right, at the holder's option, to convert all or a portion of the outstanding principal amount of the Convertible Debentures into units of the Company (the \"Units\") at a price of $0.10 per Unit. Each Unit shall be comprised of one common share in the capital of the Company (each, a \"Common Share\") and one Common Share purchase warrant (each, a \"Warrant\") exercisable at a price of $0.10 per Common Share for a period of five years from the closing of the Offering. Closing of the Offering is subject to receipt of the final approval of TSX Venture Exchange (the \"TSXV\"). All securities issued in connection with the Offering will be subject to a hold period of four months plus a day from the date of issuance and the resale...