/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE
OR FOR DISSEMINATION IN THE UNITED
STATES/
OTTAWA, Jan. 21, 2020 /CNW/ - Tetra Bio-Pharma Inc.
(TSXV:TBP) ("Tetra" or "TBP") is pleased to announce that it has
entered into an agreement with Echelon Wealth Partners Inc.
("Echelon"), pursuant to which Echelon has agreed to
purchase, on a bought deal basis, 18,868,000 units (the
"Units") of the Company at a price of C$0.53 per Unit (the "Issue Price") for
gross proceeds of approximately $10.0 million (the "Offering").
Each Unit will consist of one common share of the Company (each
a "Common Share") and one common share purchase warrant
(each, a "Warrant" and collectively the "Warrants").
Each Warrant will entitle the holder thereof to acquire one Common
Share at a price of C$0.75 for a
period of 36 months from the closing date of the Offering.
The Offering will be conducted by Echelon as sole underwriter
and bookrunner. The Company has granted Echelon an option to
purchase up to an additional 15% of the Units sold under the
Offering, at the Issue Price. The Over-Allotment Option may be
exercised in whole or in part to purchase Shares, Warrants or Units
as determined by Echelon upon written notice to the Company at any
time up to 30 days following the closing date of the Offering (the
"Over-Allotment Option").
The Company intends to use the net proceeds of the Offering
for working capital and general corporate purposes.
The Offering will be completed (i) by way of a short form
prospectus to be filed in all of the provinces and territories of
Canada other than Quebec, (ii) on a private placement basis
in the United States pursuant to
exemptions from the registration requirements of the United
States Securities Act of 1933, as amended (the "U.S.
Securities Act") and (iii) outside Canada and the
United States on a basis which does not require the
qualification or registration of any of the Company's securities
under domestic or foreign securities laws.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of securities in the United States. The securities have not
been and will not be registered under the U.S. Securities Act or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
The Offering is expected to close on or about February 13, 2020, or such other date as the
Company and Echelon may agree, and is subject to customary closing
conditions, including the approval of the securities regulatory
authorities and the TSX Venture Exchange.
About Tetra Bio-Pharma
Tetra Bio-Pharma (TSX-V:TBP) (OTCQB:TBPMF) is a
biopharmaceutical leader in cannabinoid-based drug discovery and
development with a Health Canada approved, and FDA reviewed,
clinical program aimed at bringing novel prescription drugs and
treatments to patients and their healthcare providers. The Company
has several subsidiaries engaged in the development of an advanced
and growing pipeline of Bio Pharmaceuticals, Natural Health and
Veterinary Products containing cannabis and other medicinal
plant-based elements. With patients at the core of what we do,
Tetra Bio-Pharma is focused on providing rigorous scientific
validation and safety data required for inclusion into the existing
bio pharma industry by regulators, physicians and insurance
companies.
For more information visit: www.tetrabiopharma.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.
Forward-looking statements
Some statements in this release may contain forward-looking
information. All statements, other than of historical fact, that
address activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future
(including, without limitation, statements regarding potential
acquisitions and financings) are forward-looking statements.
Forward-looking statements are generally identifiable by use of the
words "may", "will", "should", "continue", "expect", "anticipate",
"estimate", "believe", "intend", "plan" or "project" or the
negative of these words or other variations on these words or
comparable terminology. Forward-looking statements are subject to a
number of risks and uncertainties, many of which are beyond the
Company's ability to control or predict, that may cause the actual
results of the Company to differ materially from those discussed in
the forward-looking statements. Factors that could cause actual
results or events to differ materially from current expectations
include, among other things, without limitation, the inability of
the Company to obtain sufficient financing to execute the Company's
business plan; competition; regulation and anticipated and
unanticipated costs and delays, the success of the Company's
research and development strategies, including the success of this
product or any other product, the applicability of the
discoveries made therein, the successful and timely completion and
uncertainties related to the regulatory process, the timing of
clinical trials, the timing and outcomes of regulatory or
intellectual property decisions and other risks disclosed in the
Company's public disclosure record on file with the relevant
securities regulatory authorities. Although the Company has
attempted to identify important factors that could cause actual
results or events to differ materially from those described in
forward-looking statements, there may be other factors that cause
results or events not to be as anticipated, estimated or intended.
Readers should not place undue reliance on forward-looking
statements. The forward-looking statements included in this news
release are made as of the date of this news release and the
Company does not undertake an obligation to publicly update such
forward-looking statements to reflect new information, subsequent
events or otherwise unless required by applicable securities
legislation.
SOURCE Tetra Bio-Pharma