Willow Biosciences announces $1.2M debt offering
Published: 10:34 12 Sep 2023 EDT
Willow Biosciences Inc (TSX:WLLW, OTCQB:CANSF) announced a non-brokered private placement offering of convertible debenture units, with the goal of raising up to C$1.2 million.
The Calgary-based firm plans to allocate proceeds to support the commercialization and development of its pipeline of precision fermented functional ingredients for the health and wellness, food and beverage, and personal care markets.
Importantly, the infusion of funds will provide the company with the financial runway to sustain operations well into the second half of 2024.
Additional funds will strengthen Willow’s working capital and general corporate needs.
Members of the board of directors and the senior management team will subscribe to approximately 50% of the total funds raised, Willow noted in a statement.
Currently open exclusively to accredited investors, this offering is structured around Debenture Units, each comprising a 12% unsecured convertible debenture with a principal amount of C$1,000 and 4,762 common share purchase warrants. These warrants grant the holder the privilege to acquire one common share of Willow Biosciences at a price of C$0.105 per share for a 24-month window, subject to a unique provision.
In the event that the 20-day volume weighted average closing prices of Willow's shares on the Toronto Stock Exchange (TSX) or other primary exchanges surpass C$0.15 before the warrants' expiry date, the company retains the option to accelerate the warrant's expiry.
The convertible debentures may be converted into common shares at a price of C$0.105 per share at the holder's discretion. Interest on these debentures will be payable semi-annually, commencing on December 31, 2023, and can be disbursed in cash or through the issuance of shares.
