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Cardiol Therapeutics to raise $15 million to support CardiolRx commercialization

A portion of the funds raised will also go towards Cardiol’s ongoing research and development programs and additional product development

Cardiol Therapeutics -
The bought deal public offering led by Canaccord Genuity Corp sees the firm purchase 6 million units priced at $2.50 per unit

Cardiol Therapeutics Inc (TSE:CRDL) (OTCQX:CRTPF) is raising $15 million to help commercialize its pharmaceutical cannabidiol products.

The Oakville, Ontario-based company produces cannabidiol products, such as its lead drug CardiolRx, to treat heart disease and other cardiovascular conditions.

A portion of the funds raised will also go towards Cardiol’s ongoing research and development programs, additional product development and general working capital.

READ: Cardiol Therapeutics says its nanotechnology successfully delivers anti-fibrotic drugs to diseased heart

The deal was upsized from an earlier agreement that would see the company gross $11.25 million.

Under the term sheet, the bought deal public offering led by Canaccord Genuity Corp sees the firm purchase 6 million units priced at $2.50 per unit for gross proceeds of $15 million.

Each unit consists of one share and one-half of one warrant exercisable at $3.25 for a 24-month period following the closing of the offering. The warrants are subject to an acceleration right exercisable by Cardiol if the daily volume weighted average trading price on the Toronto Stock Exchange is more than $4.50 for 10 consecutive trading days.

Cardiol also granted Canaccord an overallotment option to purchase an additional 900,000 units at the same price as the offering, exercisable at any time for a 30-day period after the closing date. The move would generate additional proceeds of $2.25 million.

The offering is expected to close by June 4.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Quick facts: Cardiol Therapeutics

Price: 2.37 CAD

TSX:CRDL
Market: TSX
Market Cap: $77.7 m
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