Medipharm Secures $37.8 Million In Convertible Notes

Medipharm Labs (TSX: LABS) this morning announced that it has secured aggregate gross proceeds of $37.8 million via a private placement conducted with an institutional investor. The placement has taken the form of two separate offerings, one of which is a convertible note, while the other is a subscription receipt.

The first portion of the financing consists of $18.9 million going towards a $20.5 million unsecured convertible note. The note also contains a warrant to purchase 3,601,427 common shares, at an effective price of $2.28 per share until October 9, 2023. The convertible notes also convert at a price of $2.28 per share, and have an original issue discount of 7.75%.

The notes amortize via bi-monthly installment payments of $320,000, payable in the form of common shares at a 10% discount of the market price of the equity based on a 5 day volume weight average price.

The other half of the funds raised, $18,911,250, has been placed into escrow in relation to a subscription receipt that enables the holder to receive a second $20.5 million convertible note along with an additional warrant to purchase 3,601,427 common shares. These funds will be released upon shareholder approval. Once granted, the funds will convert automatically into what is being called the second note. It was not indicated what percentage of the company the investor would hold upon full conversion.

Proceeds from the financing will be used for general corporate purposes. The company has indicated that this includes the launch of 2.0 cannabis products, and expanding product and pharmaceutical exports.

Roth Capital Partners was the placement agent for the offering, and will receive a cash fee of 5.5% of the gross proceeds.

Medipharm Labs last traded at $1.87 on the TSX.


Information for this briefing was found via Sedar and MediPharm Labs. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

Medipharm Labs CFO Resigns From Company For Family Reasons

Medipharm Labs (TSX: LABS) this morning announced changes to their leadership team within a brief...

Thursday, November 12, 2020, 07:41:36 AM

Is 2020 The Year Cannabis Extractors Come Down With The Cronos Virus?

Our sharp-eyed editor Jay pointed out last week that cannabis cultivator Cronos Group Inc. (TSX:...

Sunday, March 15, 2020, 01:23:04 PM

Medipharm Labs Announces White Label Agreement, Provides No Details

Medipharm Labs (TSX: LABS) has entered into its second white label supply agreement with its...

Monday, May 4, 2020, 08:24:41 AM

Medipharm Labs Sees Revenues Crater 65.8% Quarter Over Quarter

Medipharm Labs (TSX: LABS) has seen its revenues absolutely implode in a single quarter. The...

Thursday, June 18, 2020, 08:35:37 AM

Medipharm Announces White Label Agreement With Argentia Gold

Medipharm Labs (TSX: LABS) and Argentia Gold Corp this morning jointly announced a supply agreement,...

Wednesday, May 27, 2020, 08:34:11 AM