Business
Vitalhub Corp. Announces Closing of $3.17M Private Placement of Units
Toronto, Ontario--(Newsfile Corp. - September 12, 2017) - VITALHUB CORP. (TSXV: VHI) (the " Co...
About this update from Vitalhub Corp.
[{"type":"text","content":"Vitalhub Corp. Announces Closing of $3.17M Private Placement of UnitsToronto, Ontario--(Newsfile Corp. - September 12, 2017) - VITALHUB CORP. (TSXV: VHI) (the \"Company\" or \"Vitalhub\"), is pleased to announce that it has completed the previously announced private placement (the \"Offering\") of units (the \"Units\") at a price of $0.10 per Unit, for total gross proceeds of $3,177,930. Each Unit consisted of one common share (each, a \"Common Share\") and one Common Share purchase warrant (each a \"Warrant\"). Pursuant to the Offering, the Company issued a total of 31,779,300 Common Shares and 31,779,300 Warrants. Each Warrant is exercisable to acquire one Common Share at an exercise price of $0.18 per share until September 12, 2019, subject to adjustment in certain events, and subject to the Company's right to accelerate expiry of the Warrants if, beginning on January 13, 2018, the closing trading price of the Common Shares on the TSX Venture Exchange equals or exceeds $0.30 for any 20 consecutive trading days (the \"Acceleration Right\"). On closing of the Offering, $1,000,000 of the net proceeds were placed into escrow (the \"Escrowed Funds\") pursuant to an escrow agreement between the Company, Echelon Wealth Partners Inc., for and on behalf of the Agents (as defined below), and Capital Transfer Agency Inc., as escrow agent, whereby the Escrowed Funds will only be released to the Company on the earlier of: (i) the closing of the Acquisition (as defined below); (ii) the acquisition by the Company of all of the securities of H.I. Next Inc.; or (iii) October 31, 2017.The Offering was conducted by Echelon Wealth Partners Inc. and Paradigm Capital Inc., as co-lead agents (the \"Co-Leads\"), along with a syndicate of agents that included Canaccord Genuity Corp. and Industrial Alliance Securities Inc. (together with the Co-Leads, the \"Agents\"). In consideration for their services, the Agents received a cash commission (the \"Cash Commission\") of $112,053.99, being 6.5% of the gross proceeds from the Offering with a reduced cash commission of 1% in respect of subscriptions from subscribers on the president's list of the Company (the \"President's List\") less the value of the Commission Units (as defined below), and 1,687,255 non-transferable compensation warrants (\"Broker Warrants\"), being 6.5% of the number of Units sold un...