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Satellos Bioscience Announces Closing of Previously Announced Non-Brokered Offering of $2.385 Million of Unsecured Non-Convertible Debentures
Toronto, Ontario--(Newsfile Corp. - March 29, 2023) - Satellos Bioscience Inc. ( TSXV: MSCL ) ( O...
About this update from Satellos Bioscience Inc
[{"type":"text","content":"Satellos Bioscience Announces Closing of Previously Announced Non-Brokered Offering of $2.385 Million of Unsecured Non-Convertible DebenturesToronto, Ontario--(Newsfile Corp. - March 29, 2023) - Satellos Bioscience Inc. (TSXV: MSCL) (OTCQB: MSCLF) (\"Satellos\" or the \"Company\"), a drug discovery company developing small molecule therapeutics to regenerate muscle as a new approach to treating disease conditions from muscular dystrophy to aging, today announced it has closed its previously announced non-brokered private placement offering of 10% unsecured non-convertible debenture units (the \"Units\") for gross proceeds of $2,385,000 (the \"Offering\"). The Company will use the proceeds of the Offering for corporate and general working capital purposes.2,385 Units were issued pursuant to the Offering. Each Unit is comprised of: (i) $1,000 principal amount of unsecured non-convertible debentures of the Company (the \"Debentures\"); and (ii) for no additional consideration, such number of common shares in the capital of the Company (each whole common share, a \"Bonus Share\", and collectively, the \"Bonus Shares\") as is equal to $100 divided by $0.355, being the closing market price of the common shares of the Company on the TSX Venture Exchange (the \"TSXV\") on March 15, 2023. An aggregate of 671,825 Bonus Shares were issued in connection with the closing of the Offering.The Debentures will mature on September 24, 2024 (the \"Maturity Date\") and bear interest at a rate of 10% per annum payable quarterly in arrears in cash.To demonstrate continued support of the Company's growth plans, Frank Gleeson (through a holding company), Geoff MacKay, the Company's Board Chair, and William Jarosz, a director of the Company, participated in the Offering. Such participation is considered a related party transaction within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The related party transaction is exempt from minority approval, information circular, and formal valuation requirements pursuant to the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the gross securities issued nor the consideration paid exceeds 25% of the Company's market capitalization.The Company may redeem the Debentures prior to the...