Dr. Patrick Frankham reports
PIVOT COMPLETES C$1.1 MILLION NON-BROKERED PRIVATE PLACEMENT AND LOAN FACILITY
Pivot Pharmaceuticals Inc. has closed a non-brokered financing consisting of a private placement and loan facility for a total of $1.1-million and has used the proceeds to reduce its outstanding debt obligations by $750,000. The term of the outstanding 10 per cent senior secured convertible debentures originally due March 2, 2019, has been extended by a period of three months to June 1, 2019. The company also reports that it has appointed MNP LLP as its new auditor.
The company issued four million units at a price of 20 cents per unit for gross proceeds of $800,000. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for one common share for a period of three years from the date of issuance at an exercise price of 30 cents. The common shares and warrants will be subject to resale restrictions for a period of four months and one day from the date of issuance. In connection with the closing of the private placement, a finder received cash commission of $88,000.
The company entered into a loan agreement for $300,000, bearing interest at 10 per cent per annum and maturing on Sept. 4, 2019. One hundred thousand common shares will be issued as a loan origination fee.
Partial debt settlement
The company has settled $750,000 of its outstanding 10 per cent senior secured convertible debentures due March 2, 2019, and has extended the remaining portion of the debenture for a further 90 days without interest. As part of the satisfaction of extending the term on the remaining $2.75-million of debt, the company paid an extension fee of $250,000.
Appointment of MNP LLP as auditor
"We would like thank Sadler Gibb LLP for their expertise and guidance over the last few years and we are pleased to announce that MNP LLP has been appointed as the company's auditor as we prepare to commercialize our product portfolio," said Dr. Patrick Frankham, chief executive officer.
There were no reservations in the former auditor's audit reports for the period commencing at the beginning of Pivot's two most recent financial years and ending at the date of the resignation of the former auditor. There are no reportable events (as the term is defined in National Instrument 51-102 -- Continuous Disclosure Obligations) between the company and the former auditor.
In accordance with National Instrument 51-102, the notice of change of auditor, together with the required letters from the former auditor and the successor auditor, has been reviewed by the board of directors and filed on SEDAR.
About Pivot Pharmaceuticals Inc.
Pivot Pharmaceuticals is a biopharmaceutical company engaged in the development and commercialization of therapeutic pharmaceuticals and nutraceuticals using innovative drug delivery platform technologies. Pivot's wholly owned medical cannabis products division, Pivot Green Stream Health Solutions Inc., conducts research, development and commercialization of cannabinoid-based nutraceuticals and pharmaceuticals.
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