The bought deal offering included the full exercise of the over-allotment option, which boosted the financing from its previously announced $15 million offering.
The Oakville, Ontario-based company produces cannabidiol products, such as its lead drug CardiolRx, to treat heart disease and other cardiovascular conditions.
Closing the deal positions Cardiol to execute on its strategy to address “significant opportunities” in healthcare, according to Cardiol’s CEO David Elsley.
"As we all adjust to the new reality of operating during a global pandemic, Cardiol is fortunate to have the opportunity to collaborate with leading international researchers to develop new therapies to address inflammation in heart failure and in other cardiovascular abnormalities, and through this work explore the possibility of improving outcomes in high-risk COVID-19 patients,” Elsley said in a statement.
“There is increasing recognition that COVID-19 involves the heart and blood vessels, with excessive levels of inflammation. We also look forward to the commercial introduction of our lead product through our national supplier agreement with Medical Cannabis by Shoppers, a subsidiary of Shoppers Drug Mart."
Under the terms of the offering, Cardiol sold a total of 6.9 million units priced at $2.50 and comprised of one share and one-half of one warrant exercisable at $3.25 for a 24-month period. The warrants are subject to an acceleration right exercisable by the company if the daily volume-weighted average trading price of the shares is greater than $4.50 for 10 consecutive days.
A portion of the funds raised will also go towards Cardiol’s ongoing research and development programs, additional product development, and general working capital.
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