00:32:21 EDT Fri 25 Sep 2020
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or Name

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Microbix Biosystems Inc
Symbol MBX
Shares Issued 96,972,705
Close 2020-01-30 C$ 0.22
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Microbix closes $2.35-million placement

2020-01-31 07:31 ET - News Release

Mr. Cameron Groome reports


Microbix Biosystems Inc. has completed a non-brokered private placement financing with gross proceeds of $2,355,000, by issuing an aggregate of 11,775,000 units at a price of 20 cents per unit.

Each unit consists of one common share of Microbix and one warrant to purchase one common share. Each warrant entitles the holder to purchase one additional common share at a price of 36 cents for five years. All securities issued under the private placement will be subject to a hold period expiring four months and one day from the date of closing. The private placement was carried out pursuant to prospectus exemptions and is subject to final acceptance by the Toronto Stock Exchange.

The proceeds of the private placement will be broadly used to support Microbix's continuing growth in total revenues, which have increased by 28 per cent since its last equity financing in 2017. More specifically, the funds are intended to enable Microbix to accelerate the development, registration and launch of new quality assessment products (QAPs) and improve the overall working capital position of the company.

Cameron Groome, president and chief executive officer of Microbix, commented: "These additional funds will be used to accelerate Microbix's transformation into a developer and marketer of innovative, proprietary, and branded medical devices that are important to health outcomes around the world. We deeply appreciate the support from our many stakeholders, internal and external, as we advance our stated goals."

The private placement was supported by a number of institutional investors, retail investment advisers, and individuals. Pursuant to such participations, Microbix has paid cash commissions of approximately $104,000 and an aggregate of 519,750 compensation warrants. Each compensation warrant entitles the holder to purchase one common share at a price of 36 cents per common share for five years.

Eleven directors and officers of the company invested in Microbix via this private placement, subscribing for an aggregate of 3.3 million units, for gross proceeds of $660,000. The participation of insiders in the private placement constitutes a related-party transaction within the meaning of the Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions -- and the policies of the TSX. The company is relying on the exemptions from the formal valuation and minority approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that participation in the private placement by insiders will not exceed 25 per cent of the fair market value of the company's market capitalization. The company did not file a material change report at least 21 days prior to the completion of the private placement since the existence of any placement or insiders' participation therein was not determined at that time.

About Microbix Biosystems Inc.

Microbix develops proprietary biological solutions for human health and well-being, with sales averaging over $1-million/month and 75 skilled employees. It makes a wide range of critical materials for the global diagnostics industry, notably antigens for immunoassays and quality assessment products (QAPs) that support clinical lab proficiency testing, enable assay development and validation, or help ensure quality control of clinical diagnostic tests.

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