Mr. Joshua Bartch reports
MYDECINE INNOVATIONS GROUP INC. MYDECINE ANNOUNCES EXCHANGE APPROVAL OF NON-BROKERED PRIVATE PLACEMENT OF SECURED CONVERTIBLE DEBENTURES
Mydecine Innovations Group Inc. has received Canadian Securities Exchange approval for its non-brokered private placement consisting of up to an aggregate of $5-million principal amount of secured convertible debenture notes.
The company sought confidential price protection from the CSE for the financing and was granted an exemption to the pricing restrictions on convertible securities. The CSE required a shareholder resolution evidencing majority approval in order to grant the exemption. The company is currently obtaining the required shareholder approval and expects to close the private placement shortly thereafter.
Each debenture has a maturity date of 12 months from the closing date and bears interest at the rate of 10 per cent per annum. The principal amount and any unpaid accrued interest on each debenture are payable in cash on the maturity date. Each debenture holder may, in its sole discretion and at any time up to the maturity date, convert the principal amount of the subject debenture, in whole or in part, and all accrued but unpaid interest, into conversion units at a conversion rate of 20 cents per conversion unit. Each conversion unit will consist of one common share of the company and one common share purchase warrant with each conversion warrant entitling the holder thereof to purchase one additional common share of the company at a price of 30 cents per warrant share for a period of 24 months from the issuance date of the conversion warrant. The debentures are secured by way of a general security agreement made in favour of a collateral agent acting as agent for all of the holders of the debentures, granting a first-priority security interest in all of the company's assets. The company has the right to prepay a part of or the entire principal amount of debentures at any time without penalty.
The company intends to use the net proceeds from the offering for capital projects and for general working capital purposes.
The debentures, conversion shares, warrants and warrant shares have been issued on a private placement basis pursuant to applicable exemptions from prospectus requirements under applicable securities laws, and as such, will be subject to a statutory hold period of four months and one day from the applicable issuance date.
About Mydecine Innovations Group Inc.
Mydecine is a publicly traded life sciences parent company with offices in Denver, Colo., and Vancouver, B.C. Mydecine is dedicated to the development and production of adaptive pathway medicine, natural health products and digital health solutions stemming from fungi. Mydecine's experienced cross-functional teams have the dynamic capabilities to oversee all areas of medicine development, including synthesis, genetic research, import/export, delivery system design and clinical trial execution through to product commercialization and distribution. By leveraging strategic partnerships with scientific, medical, military and clinical organizations, Mydecine is positioned at the forefront of psychedelic medicine naturally derived from fungi, therapeutic solutions, and fungtional mushroom vitality products. Its portfolio of unified companies, including Mydecine Health Sciences, Mindleap Health and NeuroPharm, focus on providing innovative and effective options that can provide millions of people with a healthier quality of life.
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