PharmaCielo (TSXV: PCLO) is returning to the trough for more investor dollars. The firm this morning indicated that it intends to conduct a non-brokered private placement to raise funds via the sale of secured debentures.
The financing will see the company look to raise gross proceeds of up to $15.0 million, with each debenture unit priced at $1,000. The debt is to bear interest at a rate of 11% per annum, with each debenture to also include 250 common share purchase warrants. Warrants are to be valid for a period of three years, and will allow holders to acquire a share in the company at a 50% premium to the equity price of the company at the time of the financing closing.
The debt is to be for a term of three years, and secured by mortgages on the real property of the firm and its subsidiaries. It’s also redeemable by the company at any time, with a 105% premium to be paid if redeemed in the first year, a 103$ premium if redeemed in the second year, and a 101% premium thereafter.
The financing is currently slated to close by December 30, with funds to be used for operations, working capital, and the build-out of the firms dry flower sales program.
The financing follows a $13.5 million overnight marketed offering conducted back in April.
PharmaCielo last traded at $0.93 on the TSX Venture.
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