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DENVER, Jan. 14, 2021 /CNW/ - Mydecine Innovations Group (CSE:MYCO) (OTC:MYCOF) (FSE: 0NFA) (“Mydecine“ or the “Company'), an emerging biopharma and life sciences company committed to the research, development, and acceptance of alternative nature-sourced medicine for mainstream use, is pleased to announce that it has agreed to increase the size of its previously announced bought deal financing led by Canaccord Genuity Corp. (“Canaccord Genuity“ or the “Underwriter“). Canaccord Genuity has agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 30,000,000 units of the Company (the “Units“) at a price of C$0.50 per Unit (the “Issue Price“) for aggregate gross proceeds to the Company of C$15,000,000 (the “Offering“).
Each Unit will be comprised of one common share in the capital of the Company (a “Common Share“) and one Common Share purchase warrant (a “Warrant“). Each Warrant will be exercisable to acquire one Common Share (a “Warrant Share“) for a period of 36 months following the Closing Date at an exercise price of $0.70 per Warrant Share.
The Company has granted the Underwriter an option (the “Over-Allotment Option“) to purchase up to an additional 4,500,000 Units at the Issue Price for a period of 30 days following the Closing. If the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering will be C$17,250,000.
The Company plans to use the net proceeds of the Offering to invest in additional clinical trials, for expansion of its intellectual property portfolio, continued development of its drug pipeline, expanded research and development partnerships and initiatives and for general working capital purposes.
The Units will be offered by way of a short form prospectus to be filed in all provinces of Canada except Quebec. The Offering is expected to close on February 3, 2021 (the “Closing Date“), and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities. The Company will use best efforts to obtain the necessary approvals to list the Common Shares and the Warrants on the Canadian Securities Exchange.
The Underwriter shall be paid a cash commission equal to 7.0% of the aggregate gross proceeds of the ...
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