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SERVICES OR DISSEMINATION IN THE UNITED
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TORONTO, Oct. 20, 2020 /CNW/ - NeuPath Health Inc.
(TSX-V:NPTH) ("NeuPath" or the "Company"), Canada's largest provider of chronic pain
management services, is pleased to announce that it has agreed with
Stifel GMP as co-lead underwriter and sole bookrunner and INFOR
Financial Inc. as co-lead underwriter, together with Haywood
Securities Inc. (collectively, the "Underwriters"), to
increase the size of its previously announced $8,001,000 bought deal offering. Pursuant to the
upsized deal terms, the Underwriters have agreed to purchase, on a
"bought deal" basis, 11,600,000 units of the Company (the
"Units") at a price of $0.90 per
Unit, for aggregate gross proceeds of $10,440,000. The Underwriters will also
have the option, exercisable in whole or in part at any time on or
up to 30 days after the Closing Date (as defined herein), to
purchase up to an additional 1,740,000 Units. In the event that the
option is exercised in full, the aggregate gross proceeds of the
offering will be $12,006,000.
Each Unit will be comprised of one common share of the Company
(a "Common Share") and one-half of one Common Share purchase
warrant (each whole Common Share purchase warrant, a "Warrant").
Each Warrant will be exercisable to acquire one Common Share (a
"Warrant Share") for a period of 24 months following the Closing
Date at an exercise price of $1.25
per Warrant Share.
In the event that the volume weighted average trading price of
the Common Shares for any twenty (20) consecutive trading days on
the TSX Venture Exchange (the "TSXV") exceeds $1.75, the Company shall have the right to
accelerate the expiry date of the Warrants upon not less than
fifteen (15) trading days' notice.
The Company intends to use the net proceeds from the Offering to
execute its growth strategy to geographically expand its presence
in Canada, for working capital,
and for general corporate requirements.
The offering is expected to close on or about November 5, 2020 (the "Closing Date") and is
subject to certain conditions including, but not limited to, the
receipt of all necessary approvals including the approval of the
TSXV and the applicable securities regulatory authorities.
The Units will be offered by way of a short form prospectus to
be filed in Alberta, British Columbia, Ontario, and Quebec pursuant to National Instrument 44-101
- Short Form Prospectus Distributions and in the United States on a private placement basis
pursuant to an exemption from the registration requirements of
the United States Securities
Act of 1933, as amended.
In connection with the offering the Underwriters will receive:
(i) a cash fee equal to 6.0% of the gross proceeds of the offering
(including Units sold pursuant to the exercise of the
over-allotment option); and (ii) that number of broker warrants
equal to 6.0% of the Units sold under the offering (including Units
sold pursuant to the exercise of the over-allotment option), each
entitling the holder to acquire one Common Share for a period 24
months following the Closing Date at an exercise price of
$0.90 per Common Share.
About NeuPath
NeuPath (TSX-V: NPTH) is Canada's largest provider of chronic pain
management services that operates under two leading brands in
Ontario: CPM - Centres for Pain
Management and InMedic Creative Medicine. NeuPath has 12 locations
across Ontario with more than 100
staff members that provide care to over 11,000 patients annually.
NeuPath offers a comprehensive chronic pain assessment and
multi-modal treatment plan based on recommendations by a group of
trained physicians to help patients manage their chronic pain and
optimize their quality of life. In addition to chronic pain
management clinics, NeuPath offers workplace health services as the
single, largest cost of chronic pain is lost productivity due to
job loss and sick days.
Forward-Looking Statements
This news release contains forward-looking statements. All
statements, other than statements 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 with respect to the filing of a
prospectus, the timing of closing the offering and the use of
proceeds therefrom) are forward-looking statements. These
forward-looking statements reflect the current expectations or
beliefs of the Company based on information currently available to
the Company. Forward-looking statements are subject to a number of
risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the
forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that
they will have the expected consequences to, or effects on, the
Company. Factors that could cause actual results or events to
differ materially from current expectations included in this news
release include, among other things, the severity, duration and
spread of the COVID-19 outbreak, as well as its direct and indirect
impacts that the pandemic may have on the Company's operations. A
comprehensive discussion of these and other risks and uncertainties
can be found in the Filing Statement filed on SEDAR under the
Company's profile at www.sedar.com.
Any forward-looking statement speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Although the
Company believes that the assumptions underlying the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to their
inherent uncertainty.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS THE RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
SOURCE NeuPath Health Inc.