Aequus Pharmaceuticals Inc (CVE:AQS) said Thursday that it has closed its previously announced public offering to raise approximately C$2.5 million equity financing to raise funds to launch its Evolve preservative-free line of dry eye products.
The Vancouver-based specialty pharmaceutical company issued 31,250,000 units at a price of C$0.08 per unit for aggregate gross proceeds of C$2.5 million. Each unit comprised of one common share and one-half of one common share purchase warrant.
Each warrant entitles the holder to purchase one share at an exercise price of C$0.12 per share for a period of 36 months following the closing date of the offering on August 6. The warrants include an acceleration provision, exercisable at the company's discretion, if the company's daily volume weighted average share price is greater than C$0.20 for ten consecutive trading days.
The company said that its investment dealer Cormark Securities received a cash commission equal to 5% of the aggregate gross proceeds of the offering, and broker warrants equal to 5% of the aggregate number of units issued and sold.
The offering was completed in each of the provinces of British Columbia, Alberta, Manitoba and Ontario.
Aequus intends to use the funds to buy inventory for the launch of its Evolve line of preservative free dry eye products, associated marketing and regulatory application costs for a preservative-free prescription glaucoma product. Some of the money will also be as general corporate and working capital.
Aequus CEO Doug Janzen, CFO Ann Fehr, and a director of Aequus purchased 3,125,000 units, 125,000 units and 625,000 units, respectively, under the offering.
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