Kane Biotech Announces Private Placement Offering
December 04 2019 - 8:00AM
Kane Biotech Inc. (TSX-V:KNE) (the “Company” or “Kane Biotech”)
today announced its intention to undertake a non-brokered private
placement offering (the “Offering”) of up to 25,000,000 units
(“Units”) at a price of $0.14 per Unit for gross proceeds of up to
$3,500,000. Each Unit shall be comprised of one common share and
one-half of one common share purchase warrant (a “Warrant”). Each
full Warrant shall entitle the holder thereof to purchase one
additional common share of the Company for a period of two years,
at an exercise price of $0.18 per share.
The net proceeds of the Offering will be used
for business development, technology and product commercialization,
patent and trademark filings, regulatory expenses, clinical trials
and general working capital.
The Company has been advised by a number of its
insiders, including the Chairman of its Board of Directors, Philip
Renaud; its President and Chief Executive Officer, Marc Edwards;
and its Chief Scientific Officer, Dr. Gordon Guay, that they intend
to subscribe for a minimum aggregate of $1,100,000 (7,857,000
Units) of the Offering.
“This private placement, combined with more than
$4,100,000 in non-dilutive funding recently awarded by Western
Economic Diversification Canada (WD) and the National Research
Council of Canada Industrial Research Assistance program (NRC
IRAP), will provide us with the requisite financial resources to
continue executing our growth plan for at least the next two
years,” said Mr. Edwards. “Our business has been successfully
transformed over the past five quarters, demonstrated by strong
revenue growth in our Animal Health business and the steady
advancement toward commercialization of our first Human Health
product. We expect rapidly growing bluestem Oral Care line sales in
new (Europe and Asia) and existing markets; strong growth and
continued geographical expansion of our licensing agreement with
Dechra Pharmaceuticals; new licensing agreements for our patented
technologies in Animal Health; and regulatory approval and
licensing of our DispersinB human hydrogel. The fact that I, our
Chairman, our CSO and a number of senior management team members
plan on participating in the financing is, in my opinion, an
indicator of the strong internal confidence in the future of the
Company.”
Certain persons may assist the Company by
introducing potential subscribers for the Offering and, subject to
compliance with applicable legislation, may be entitled to receive
a finder’s fee in such amount as may be determined by the
Company.
In the event that the common shares traded on
the TSX Venture Exchange have a closing price at or exceeding $0.25
per Share for five (5) consecutive trading days, the Company
reserves the right to call the Warrants, at their exercise price of
$0.18 per Warrant. If the Company wishes to call the Warrants, the
Company must provide written notice to the holders of the Warrants
that it is calling the Warrants. Investors will have thirty (30)
days from the date of such notice to exercise the Warrants and, in
the event that any Warrants are not exercised, such Warrants shall
be cancelled. Holders of Warrants shall be restricted from
exercising any number of Warrants that will cause the holder to own
such number of common shares that will equal or exceed 20% of the
then issued and outstanding shares.
The Offering is subject to receipt of all
necessary approvals, including the approval of the TSX Venture
Exchange.
This press release does not constitute
an offer to sell or the solicitation of an offer to buy these
securities, nor shall it constitute an offer, solicitation or sale
in any jurisdiction in which such offer, solicitation or sale is
unlawful. These securities have not been, and will not be,
registered under the United States Securities Act of 1933, as
amended, or any state securities laws, and may not be offered or
sold in the United States or to U.S. persons unless registered or
exempt therefrom.
About Kane Biotech Inc.
Kane Biotech is a biotechnology company engaged
in the research, development and commercialization of technologies
and products that prevent and remove microbial biofilms. The
Company has a portfolio of biotechnologies, intellectual property
(56 patents and patents pending, trade secrets and trademarks) and
products developed by the Company's own biofilm research expertise
and acquired from leading research institutions. StrixNB™,
DispersinB®, bluestem™, AloSera™, coactive+™ and Kane® are
trademarks of Kane Biotech Inc. The Company is listed on the TSX
Venture Exchange under the symbol "KNE."
For more information, please visit
www.kanebiotech.com, or contact:
Marc EdwardsChief Executive OfficerKane Biotech Inc. +1 (514)
910-6991medwards@kanebiotech.comRay Dupuis Chief Financial
OfficerKane Biotech Inc. +1 (204)
298-2200rdupuis@kanebiotech.com Stephen KilmerInvestor
Relations +1 (646) 274-3580skilmer@kanebiotech.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Caution Regarding Forward-Looking
Information
This press release contains certain statements
regarding Kane Biotech Inc. that constitute forward-looking
information under applicable securities laws. These statements
reflect management's current beliefs and are based on information
currently available to management. Certain material factors or
assumptions are applied in making forward-looking statements, and
actual results may differ materially from those expressed or
implied in such statements. These risks and uncertainties include,
but are not limited to, risks relating to the Company's: (a)
financial condition, including lack of significant revenues to date
and reliance on equity and other financing; (b) business, including
its early stage of development, government regulation, market
acceptance for its products, rapid technological change and
dependence on key personnel; (c) intellectual property including
the ability of the Company to protect its intellectual property and
dependence on its strategic partners; and (d) capital structure,
including its lack of dividends on its Shares, volatility of the
market price of its Shares and public company costs. Further
information about these and other risks and uncertainties can be
found in the disclosure documents filed by the Company with
applicable securities regulatory authorities, available at
www.sedar.com. The Company cautions that the foregoing list of
factors that may affect future results is not exhaustive.
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