Business
Spectral Diagnostics announces Proposed Offering of up to $18.2 million
TORONTO , June 11, 2014 /CNW/ - Spectral Diagnostics Inc. (TSX: SDI) (OTC QX: DIAGF) (...
About this update from Spectral Medical Inc
[{"type":"text","content":"\n\n\nTORONTO, June 11, 2014 /CNW/ - Spectral Diagnostics Inc. (TSX: SDI) (OTC QX: DIAGF) (the \"Corporation\") today announced it has entered into agreements for a non-brokered\n private placement of up to $18.2 million (the \"Proposed Offering\").\n\n\n\"We are very pleased to have reached agreement with certain of our\n existing investors for this substantial financing at market, without\n the need for a price discount or warrants, and with terms fair to all\n shareholders,\" stated Anthony Businskas, Executive Vice President and\n CFO of Spectral. \"This financing, and the continued support of our\n major shareholders, positions us well and gives us great confidence\n that we should have the necessary funds to successfully complete our\n EUPHRATES clinical trial,\" continued Mr. Businskas.\n\n\nThe Corporation intends to use the net proceeds of the Proposed Offering\n to fund its EUPHRATES clinical development program for PMX, its lead\n theranostics product for the treatment of severe sepsis with septic\n shock and for working capital and general corporate purposes.\n\n\nThe Proposed Offering is comprised of a Tranche \"A\" component and a\n Tranche \"B\" component.  The Tranche \"A\" component is comprised of\n 45,051,186 common shares of the Corporation (\"Shares\") at a subscription price of $0.293 per Share (being the 20 day volume\n weighted average trading price of the Shares on the TSX for the 20 day\n period ending June 6, 2014, the day the Proposed Offering was priced)\n for aggregate proceeds of $13.2 million, of which (a) 17,064,846 Shares, for aggregate proceeds of $5 million,\n are proposed to be sold by the Corporation to its lead investor Toray\n Industries, Inc. (\"Toray\") pursuant to a private placement agreement between the Corporation and\n Toray (the \"Toray Private Placement Agreement\"); (b) 18,259,382 Shares, for aggregate proceeds of $5.35 million, are\n proposed to be sold by the Corporation to other insiders pursuant to\n subscription agreements entered into between the Corporation and such\n investors; and (c) 9,726,958 Shares, for aggregate proceeds of $2.85 \n million, are proposed to be sold by the Corporation to other investors\n pursuant to subscription agreements entered into between the\n Corporation and such investors.\n\n\nThe Tranche \"B\" component of the Proposed Offering is...