Microbix Biosystems announces the completion of its second tranche

Microbix Biosystems Inc. announces that it has completed a second and final tranche on October 19, 2017, of the brokered private placement financing. The first tranche gross proceeds were $2.33 million and an accumulation of 7,784,500 issued units. Microbix has now closed the second tranche of private placement funding for a further $1.17 million, which totals 3,882,133 issued units at $0.30 per unit.

Each individual unit consists of one common share of Microbix, and one-half of one warrant to purchase one common share. Each whole warrant accredits the holder to purchase one additional common share at a price of $0.36 for three years.

The proceeds of the last tranche will be used to upgrade some of the production facilities, such as additional bioreactor equipment, support the commercialization of quality assurance or proficiency control products and provide further working capital.

“These proceeds will support our initiatives to build sales, enhance earnings and increase shareholder value,” commented Cameron Groome, president and CEO of Microbix.

Dominick Capital Corporation acted as the lead agency regarding the private placement. Dominick and its selling group members received a cash commission of $73,054.80 and an aggregate of 243,516 agent warrants relating to the second tranche of the private placement. Each agent warrant permits the holder to purchase one common share at a price of $0.335 per common share for two years.

All securities issued under the private placement will be subject to a hold period expiring four months and one day from the date of closing. The private placement was carried out pursuant to prospectus exemptions and is subject to final acceptance by the company.

A company insider contributed a gross proceed of $100,000 for this second tranche, which is an aggregate of 333,334 units. The participation of insiders in the private placement constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 -Protection of Minority Security Holders in Special Transactions (MI 61-101) and the policies of the company. Microbix is relying on the exemptions from the formal valuation and minority approval requirements contained in sections 5.5(a)and 5.7(1)(a) of MI 61-101 on the basis that participation in the private placement by the insider will not exceed 25% of the fair market value of the company’s market capitalization. A material change report was not filed by Microbix at least 21 days prior to completion regarding the existence of any placement or insider’s participation since it was not determined at that time.

Microbix Biosystems Inc. is a publicly traded company that is listed on the Toronto Stock Exchange and headquartered in Mississauga, Ontario, Canada. The company specializes in the development of proprietary biological and technology solutions for human health and well-being and manufactures a wide range of critical biological materials for the global diagnostics industry.

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