Mr. Patrick Frankham reports
PIVOT PHARMA ANNOUNCES CLOSING OF C$11.533 MILLION FIRST TRANCHE OF C$15 MILLION PRIVATE PLACEMENT
Pivot Pharmaceuticals Inc. has closed the first tranche of its non-brokered private placement, previously announced on April 9, 2019, by issuing 46,132,000 units at a price of 25 cents per unit for gross proceeds of $11,533,000.
Each unit consists of one common share of the company and one common share purchase warrant of the company. Each whole warrant shall be exercisable for a period of two years from the closing date of the offering to purchase one common share at a price of 35 cents per common share. The common shares and warrants issued pursuant to the offering are subject to a four-month hold period under applicable securities laws, which hold period expires four months and a day following the date of issue of the units.
Pivot will use the proceeds from the first tranche to fully repay in cash two outstanding convertible debentures totaling $2.75-million. In addition, the company will make a final instalment payment in the amount of $333,333 (U.S.) to complete the purchase of the RTIC patent portfolio.
Pivot's chief executive officer, Dr. Patrick Frankham, stated: "I would like to thank all of our current and new shareholders who have put their trust in us and have contributed to the success of this financing. The company's cash position is strong and is now debt free. By leveraging the company's and strategic shareholder's relationships with national and international consumer packaged goods players and distributors, we look forward to launching cannabis-based health and wellness products using our patent-protected drug delivery technologies."
About Pivot Pharmaceuticals Inc.
Pivot Pharmaceuticals Inc. is a science-based consumer packaged goods cannabis company engaged in the development and commercialization of health and wellness products using innovative, patent-protected drug delivery technologies. Upon receipt of a standard processor licence (pending) from Health Canada, Pivot's premium, bioavailable, stable and effective products will be manufactured at its 50,000 square feet cyclic good manufacturing practice facility located in Montreal, Que.
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