Canntab Therapeutics Limited (CSE:PILL) (OTCQB:CTABF) announced Thursday it had closed a non-brokered private placement of convertible debentures to raise up to C$1,575,000.
The biopharmaceutical company, which specializes in manufacturing hard pill cannabinoid formulations, said that the debentures are convertible at $0.80 per share and bear a two-year maturity date.
Canntab has the right to prepay or redeem a portion or the entire principal amount plus any accrued interest with a minimum of 20 days notice prior to the redemption date, as well as the right to force conversion at the conversion price if the volume weighted average trading price exceeds C$1.20 for 15 straight days.
The debentures bear an interest rate of 10% per year. Funds raised will go towards working capital, accordignt to a statement.
"We are pleased to have closed this offering so quickly and with only a few investors,” Canntab CEO Larry Lotowsky said in a statement Thursday afternoon.
“We are also pleased to include our first institutional participation in this offering. We are on the cusp of the most important developments in our short history and the capital raised from this offering will provide us with the financial flexibility to achieve our short and long-term goals.”
On closing, the company issued to the purchasers of the convertible debentures one share purchase warrant for each Share underlying the convertible debenture purchased. The warrants are exercisable for a period of three years from issuance into shares of Canntab with each Warrant entitling the holder to purchase one share at an exercise price of $1 per share.
The firm also issued 50,000 warrants to an arm's-length consultant at an exercise price of $0.80 for a period of two years from the date of grant.
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