MustGrow Biologics (CSE: MGRO) this morning closed off its previously announced private placement financing. The company managed to raise significant funds under the raise, bringing in total gross proceeds of $7.1 million.
Originally pegged at $2.0 million, the financing was subsequently tripled in size due to strong investor demand, especially among certain high net worth individuals. It appears that there was still excess demand as well, with the upsized $6.9 financing finally closing out at $7.1 million.
A total of 2.7 million units of the company were sold under the offering at a price of $2.60 per unit. Each unit contains one common share and one half of a purchase warrant, with each warrant exercisable at $4.00 for a period of two years from the date of issuance.
Proceeds from the offering are to be used for the development of the firms tech pipeline, as well as for working capital and general corporate purposes.
As previously identified Ira Gluskin and related parties to Gluskin subscribed for $1.0 million under the financing.
MustGrow Biologics last traded at $3.35 on the CSE.
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