Valeo Pharma upsizes and closes a $6.645 million non-brokered private placement of unsecured non-convertible debenture units

Valeo Pharma Inc. (CSE:VPH) (OTCQB:VPHIF) (FRA:VP2) said it has upsized and closed a $6.645 million non-brokered private placement of unsecured non-convertible debenture units.

The company said that the net proceeds of the offering will be used for working capital and general corporate purposes. 

“The closing of this upsized placement is testament to the confidence and support our insiders and those close to the Company have in management and Valeo’s business model”, said Steve Saviuk, Valeo Pharma CEO. “I cannot overemphasize what a pivotal year 2021 is becoming with the recent launch of Redesca and the imminent launches of Enerzair Breezhaler and Atectura Breezhaler”.

READ: Valeo Pharma commences commercial shipments of Redesca and Redesca HP across Canada

The company said it issued 6,645 unsecured non-convertible debentures units at a purchase price of $1,000 each for gross proceeds of $6,645,000. Each debenture unit consists of one unsecured non-convertible debenture of the company in the principal amount of $1,000 and 200 Class “A” share purchase warrants.

Each warrant entitles the holder thereof to purchase one Class “A” share of the company at an exercise price of $1.60 at any time up to 24 months following the closing date of the offering. The debentures will mature at the latest 9 months after the closing and bear interest at a rate of 8% per annum from the date of issue, payable in cash, semi-annually in arrears.

The securities issued under the private placement are subject to a four-month hold period in accordance with applicable securities legislation.

The company said it has paid $38,500 as finder’s fees to arm’s-length parties in connection with the placement and issued a total of 7,700 broker warrants in compliance with applicable securities laws. Insiders, Senior executives, staff members and three directors of the company all participated in the private placement for an aggregate amount of $2.6 million.

Valeo Pharma is a Canadian pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada with a focus on Respiratory Diseases, Neurology, Oncology and Hospital Specialty Products.

Headquartered in Kirkland, Quebec, the company has all the required capabilities and the full infrastructure to register and properly manage its growing product portfolio through all stages of commercialization.

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Story by ProactiveInvestors