Tetra Bio-Pharma Inc. (TSX:TBP) said Tuesday that it has upsized the 'bought-deal' offering it announced late on Monday to an aggregate of 57,000,000 equity units of the company at an unchanged price of $0.22 each for aggregate gross proceeds of $12,540,000
On Monday the company said it had entered into an agreement with Canaccord Genuity and Leede Jones Gable under which they would, as underwriters, purchase, on a bought-deal basis, 45,500,000 units of the company at a price of $0.22 each for gross proceeds of $10,010,000.
The company, a biopharmaceutical pioneer in immunomodulator drug discovery and development, said it intends to use the net proceeds from the offering for its drug development program, potential acquisitions and growth opportunities, as well as working capital and general corporate purposes.
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Each equity unit in the offering will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one Tetra Bio-Phaarma common share at an exercise price of $0.28 at any time up to 36 months following closing.
The company said it has granted the underwriters an over-allotment option, exercisable in part or in whole at the underwriters' sole discretion, at any time beginning on the closing of the offering until 30 days following the closing, to purchase up to that number of additional equity units, common shares or warrants, or any combination thereof, as is equal to 15% of the aggregate number of equity units sold in the offering.
If the over-allotment option is exercised in full, the gross proceeds to the company from the offering will be approximately $14,421,000.
Tetra Bio-Pharma said the underwriters will be paid a commission equal to 7.0% of the aggregate gross proceeds of the offering payable in cash or units, or any combination thereof, at the option of the underwriters, together with warrants exercisable at any time up to 36 months following the offering's closing date to acquire the number of units equal to 7.0% of the aggregate number of units issued under the offering, at an exercise price equal to the issue price.
In addition, upon closing of the offering, the company will issue to the underwriters a corporate finance fee equal to that number of equity units which is equal to 2.0% of the aggregate number of equity units issued under the offering.
The closing of the offering is expected to occur on or about March 2, 2021, and is subject to the company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
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