Innocan Pharma Corporation (CSE:INNO) said it had closed a $5.1 million prospectus offering that will go towards research and development on its CBD drug delivery platforms.
The financing was comprised of just over 28.4 million units priced at $0.18 per unit, consisting of one share and one warrant exercisable at $0.25 for a three-year period.
Other proceeds will be used for sales and marketing expenses, operating costs and general corporate purposes.
Innocan’s largest shareholder Tamar Innovest Limited purchased nearly 3.9 million units worth around $700,000, giving it approximately 19.6% ownership of the company.
The offering was led by Mackie Research Capital Corporation as sole bookrunner and Cannacord Genuity Corp acting as co-lead agents with Haywood Securities Inc and PI Financial Corp. Innocan granted the agents an over-allotment option, exercisable for up to 30 days from the closing of the offering, to increase the size of the placement by up to 15% of the number of units sold.
The offering includes an acceleration clause whereby if the daily volume weighted average trading price of Innocan shares equals or exceeds $0.50 for 20 consecutive days, the company may hasten the expiry date of the warrants to 30 days following the acceleration notice.
Israel-based Innocan Pharma is a specialty pharmaceutical company which develops products that harness the properties of cannabinoids combined with smart delivery formulations.
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