Mr. Andrew Rae reports
ICO THERAPEUTICS INC. ANNOUNCES THE ISSUANCE OF 4,000,000 UNITS PURSUANT TO ITS C$750,000 NON-BROKERED PRIVATE PLACEMENT
iCo Therapeutics Inc. has issued a total of four million units to a Canadian institutional investor pursuant to its previously announced non-brokered private placement. The units were sold at a price of five cents per unit for total gross proceeds to the company of $200,000.
Each unit issued pursuant to the private placement consists of one common share in the capital of the company and one common share purchase warrant exercisable at 7.5 cents for 36 months from the date of the closing of the private placement. The warrants are subject to an acceleration clause that allows the company to accelerate the expiry date of the warrants. In the event that, at any time after four months from the closing date, the volume weighted average trading price of the common shares on the TSX Venture Exchange equals or exceeds 14 cents for 10 consecutive trading days, the warrants will expire on the date that is at least 30 days following the issuance of a press release announcing such acceleration from the company.
The company has agreed: (i) to pay a cash finder's fee of 8 per cent of the gross proceeds to the company raised from subscriptions in the private placement from persons introduced to the company by certain finders; and (ii) to issue compensation warrants equal to 8 per cent of the units subscribed for by persons introduced to the company by certain finders. Each finder's warrant will entitle the finder to purchase one additional common share for a period of 24 months from the closing of the private placement at an exercise price of five cents per finder's warrant.
The private placement is expected to occur in several closings, concluding on or about Feb. 18, 2019, and is subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a four-month hold period in accordance with applicable Canadian securities laws. There is no material fact or material change regarding iCo that has not been generally disclosed.
The company intends to use the net proceeds from the private placement for working capital and general corporate purposes.
About iCo Therapeutics Inc.
iCo Therapeutics identifies existing development-stage assets for use in underserved ocular and infectious diseases. Such assets may exhibit utility in non-ophthalmic conditions outside the company's core focus areas and if so the company will seek to capture further value via partnerships, such as its partnership with Immune Pharmaceuticals, which is in several phase 2 studies involving iCo-008.
We seek Safe Harbor.
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