Mind Cure Health (CSE: MCUR) this morning announced that it is conducting a non-brokered private placement. The financing is looking to raise $3.0 million in gross proceeds at a price of $0.45 per unit.
Each unit sold under the offering is to consist of one common share and one common share purchase warrant. Warrants have an exercise price of $0.60, and an expiry of two years following the close of the transaction. A total of 6,666,666 units are expected to be sold under the offering.
Proceeds from the offering have been earmarked for a number of purposes, with the primary function being that of the evaluation of new product candidates. Also included is that of supporting the existing product line, increasing spending for investor relations, advertising and marketing, and hiring additional persons to push forward the companies business goals. Naturally, the remainder will be spent on general working capital purposes.
The offering is expected to close next week, with the company indicating that it has received subscription commitments for an aggregate amount of $3.0 million. The commitments are said to come from subscribers under a number of prospectus exemptions.
Mind Cure Health last traded at $0.58 on the CSE.
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