- $3.92 million raised from
non-brokered private placement offering, and $0.58 million from insider loan
- Investissement Québec and insiders each invest $2.0 million
- Proceeds from the financing to be used to strengthen
working capital and support ongoing growth
MONTREAL, Aug. 31,
2023 /CNW/ - Valeo Pharma Inc. (TSX:
VPH) (OTCQB: VPHIF) (FSE:VP2) ("Valeo" or the
"Company"), a Canadian pharmaceutical company, today
announced the closing of a $4.5
million financing. The Company closed a non-brokered private
placement offering (the "Offering") of 13,999,997 units (the
"Units") of the Company at a price of $0.28 per Unit (the "Issue Price") for
gross proceeds of $3.92 million,
including the participation of Investissement Québec for
$2.0 million and $1.421million from Insiders. In addition, the
Company secured a loan agreement with a related party for a
principal amount of $580,000 bearing
annual interest at a rate of 12%.
"We greatly appreciate the support of Investissement Québec and
our Insiders in leading this capital financing thereby continuing
to demonstrate their confidence in our business plan and our growth
performance", said Steve Saviuk,
CEO. "This financing will strengthen our working capital position
and enable us to support the market share gains of our core
products in our key therapeutic areas".
"We are pleased to support Valeo Pharma in their growth
strategy," stated Guy LeBlanc,
President and CEO of Investissement Québec. "The life sciences
industry is a key sector of our economy and we will keep supporting
and assisting our entrepreneurs in achieving their goals, both in
Québec and around the world."
The Company issued 13,999,997 Units at a price of $0.28 per Unit for total gross proceeds of
$3,920,000. Each Unit consist of one
(1) class A share of the Company (each, a "Share") and
one-half (1/2) Share purchase warrant of the Company (a
"Warrant"). Each full Warrant entitles the holder to
purchase one (1) Share in the capital of the Company (a "Warrant
Share") at the price of $0.35 per
Warrant Share for a period of 60 months from the closing date of
the Offering (the "Closing Date").
In the event that the daily volume weighted average trading
price of the Shares over any ten (10) consecutive trading days is
greater or equal to $0.70, the
Company may give notice to the Warrant holder, at any time after
the first 12 months following the closing, that all outstanding
Warrants must be exercised within a period of 30-days from the date
of receipt of the notice, failing which the Warrants will
automatically expire
The Company will use the net proceeds of the Offering to fund
working capital.
The Common Shares and the Warrants are subject to a statutory
4-month hold period under the applicable securities laws and in
such case the certificates evidencing the Shares and the Warrants
will bear a legend to that effect, as applicable.
Each subscription by a "related party" of the Company is
considered to be a "related party transaction" for purposes of
Multilateral Instrument 61-101 – Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The Company did
not file the material change report more than 21 days before the
expected closing date of the Offering as the details of the
Offering and the participation therein by each "related party" of
the Company were not settled until shortly prior to the closing of
the Offering, and the Company wished to close the Offering on an
expedited basis for sound business reasons. The Company is relying
on exemptions from the formal valuation and minority shareholder
approval requirements available under MI 61-101. The Company is
exempt from the formal valuation requirement in section 5.4 of MI
61-101 in reliance on sections 5.5(a) and (b) of MI 61-101 as the
fair market value of the transaction, insofar as it involves
interested parties, is not more than the 25% of the Company's
market capitalization, and no securities of the Company are listed
or quoted for trading on prescribed stock exchanges or stock
markets. Additionally, the Company is exempt from minority
shareholder approval requirement in section 5.6 of MI 61-101 in
reliance on section 5.7(b) as the fair market value of the
transaction, insofar as it involves interested parties, is not more
than the 25% of the Company's market capitalization. The Offering
was approved by the board of directors of Valeo.
ABOUT INVESTISSEMENT QUEBEC
Investissement Quebec's mission is to play an active role in
Quebec's economic development by
stimulating business innovation, entrepreneurship and business
acquisitions, as well as growth in investment and exports.
Operating in all of the province's administrative regions, the
Corporation supports the creation and growth of businesses of all
sizes with investments and customized financial solutions. It also
assists businesses by providing consulting services and other
support measures, including technological assistance available from
Investissement Québec – CRIQ. In addition, through Investissement
Québec International, the Corporation prospects for talent and
foreign investment, and assists Quebec businesses with export activities.
About Valeo Pharma Inc.
Valeo Pharma is a fast-growing Canadian pharmaceutical company
dedicated to the commercialization of innovative prescription
products in Canada with a focus on
Respiratory/Allergy, Ophthalmology and Hospital Specialty Products.
Headquartered in Kirkland, Quebec
Valeo Pharma has all the required capabilities and the full
infrastructure to register and properly manage its growing product
portfolio through all stages of commercialization. For more
information, please visit www.valeopharma.com and follow us on
LinkedIn and Twitter.
Forward Looking Statements
This press release contains forward-looking statements about
Valeo's objectives, strategies and businesses that involve risks
and uncertainties. These statements are "forward-looking" because
they are based on our current expectations about the markets we
operate in and on various estimates and assumptions. Actual events
or results may differ materially from those anticipated in these
forward-looking statements if known or unknown risks affect our
business, or if our estimates or assumptions turn out to be
inaccurate.
SOURCE Valeo Pharma Inc.