Tetra Bio Pharma (TSXV: TBP) this morning announced that it will be conducting a financing for up to $10 million following the recent announcement of acquiring Health Canada approval for two of its products. The financing, which is being conducted on a bought deal basis, is being ran through that of Echelon Wealth Partners.
Gross proceeds for the financing are expected to be approximately $10.0 million, with Echelon having the option for a 15% over allotment dependent on investor demand. The financing is being conducted at a price per unit of $0.53, with each unit also including a full warrant exercisable for a period of three years at a price of $0.75 each.
Proceeds from the financing will be utilized for working capital and general corporate purposes. While not explicitly stated, the funds will likely go towards Tetra Bio Pharma’s recently announced commercialization strategy for that of its Terpacan products, which last week received approval for over the counter sales by Health Canada. The current strategy outlines an estimated commercialization date of mid 2020.
The financing is expected to close on or around February 13, 2020.
Tetra Bio Pharma last traded at $0.62 on the TSX Venture.
Information for this briefing was found via Sedar, Health Canada and Tetra Bio-Pharma. 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.
