LexaGene Holdings Inc (CVE:LXG) (OTCMKTS:LXXGF) updated shareholders on Wednesday about the terms of its financing to fund further research and development of its genetic analyzer technology.
The company told investors last week that it had filed a preliminary prospectus with the securities regulatory authorities in each of the Canadian provinces, except Quebec, relating to the planned sale of units to raise a minimum of $3.5 million and a maximum of $10 million.
Massachusetts-based LexaGene said it plans to use the proceeds for research and development, marketing, and possibly to support the building of inventory and initial commercial sales.
READ: LexaGene Holdings files preliminary prospectus relating to offering to raise funds for R&D, marketing
Under the financing's terms, the company will offer a minimum of just over 6.7 million units and a maximum of 19.2 million units priced at C$0.52.
Each unit comprises one share and one warrant exercisable at C$0.75 for a 36-month period following the closing date.
Industrial Alliance Securities Inc will act as lead agent for the offering in Canada. The offering is being undertaken on a commercially reasonable “best efforts” agency basis in each of the provinces of Canada, except Quebec.
LexaGene said that closing of the offering is expected to occur by October 10 subject to regulatory approval.
The firm is getting ready to widely launch the LX2 Genetic Analyzer to the veterinary industry and other underserved markets valued at an estimated US$40 billion.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas