Investors also received 10 million warrants, exercisable at C$0.15
By Devika Patel
Knoxville, Tenn., Sept. 30 - ZoomMed Inc. said it sold a C$1.5 million 15% secured convertible debenture in a private placement. Avenue Capital Markets Inc. was the agent.
The debenture is convertible into common shares at an initial conversion price of C$0.15 per share, a 66.67% premium to the Sept. 29 closing share price of C$0.09. The debenture matures in two years.
Investors also received 10 million two-year warrants, which are each exercisable at C$0.15, also a 66.67% premium to the Sept. 29 closing price.
"After robustly developing the Prescriber ZRx and investing to build the platform for exchange of information most used by Canadian doctors, it is time to turn to the lucrative American market. In a context where the timing is extremely conducive to the strategic positioning of ZoomMed in the United States, we decided to get additional funding," president and chief executive officer Yves Marmet said in a press release.
Brossard, Quebec-based ZoomMed sells prescription management products and laboratory equipment.
| Issuer: | ZoomMed Inc.
|
| Issue: | Secured convertible debenture
|
| Amount: | C$1.5 million
|
| Maturity: | Two years
|
| Coupon: | 15%
|
| Conversion price: | C$0.15
|
| Conversion premium: | 66.67%
|
| Warrants: | 10 million
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15
|
| Agent: | Avenue Capital Markets Inc.
|
| Settlement date: | Sept. 30
|
| Stock symbol: | TSX Venture: ZMD
|
| Stock price: | C$0.09 at close Oct. 26
|
| Market capitalization: | C$11.45 million
|
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