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Valeo Pharma Announces Upsize of Previously Announced Bought Deal Private Placement of Convertible Debentures to $15 Million With Concurrent $10 Million Private Placement From Investissement Quebec
Valeo Pharma Announces Upsize of Previously Announced Bought Deal Private Placement of Convertible Debentures to $15 Million With Concurrent $10 Million Private Placement From Investissement Quebec.
About this update from Valeo Pharma Inc.
[{"type":"text","content":"\n NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS MONTREAL, Nov. 24, 2021 (GLOBE NEWSWIRE) -- Valeo Pharma Inc. (CSE:VPH, OTCQB: VPHIF, FSE: VP2) (“Valeo Pharma” or the “Company”), a Canadian pharmaceutical company, is pleased to announce that in connection with its previously announced bought deal private placement of convertible unsecured debentures (the “Offering”), the Company and Desjardins Capital Markets, as lead underwriter and sole bookrunner, together with a syndicate of underwriters (collectively, the “Underwriters”), have agreed to increase the size of the Offering from $10,000,000 to $15,000,000 aggregate principal amount of convertible unsecured debentures of the Company (the “Debentures”). The Debentures will mature on December 31, 2024 (the \"Maturity Date\") and will accrue interest at the rate of 12.0% per annum, payable quarterly beginning on March 31, 2022. At the holders' option, the Debentures may be converted into common shares of the Company at any time and from time to time, up to the Maturity Date, at a conversion price of $1.15 per common share. The Company will use commercially reasonable efforts to list the Debentures on the Canadian Securities Exchange (the “CSE”). Concurrently with the Offering, Investissement Québec has committed to a concurrent private placement of $10,000,000 of convertible unsecured debentures issuable on the same terms as those issuable pursuant to the Offering (the “Concurrent Private Placement”), resulting in aggregate gross proceeds from the Offering and Concurrent Private Placement of $25,000,000. The net proceeds of the Offering and Concurrent Private Placement will be used to (i) support commercial efforts related to the recently launched products (Redesca™, Enerzair®, and Atectura®); (ii) reimburse, at maturity, the non-convertible debentures previously issued by the Company and maturing on January 31, 2022 and July 10, 2022; (iii) for working capital and general corporate purposes; and (iv) support an upcoming TSX listing application. The Debentures and any common shares issuable upon conversion thereof will be subje...