Deal consists of 9% secured debenture, convertible at C$0.35 per share
By Devika Patel
Knoxville, Tenn., Feb. 20 - Microbix Biosystems Inc. said it sold a C$1.5 million 9% secured convertible debenture to its existing debentureholder.
The debenture is convertible into common shares at C$0.35 per share, which is a 28.57% discount to the Feb. 19 closing share price of C$0.49.
Proceeds will be used for development of the company's LumiSort prototype.
The terms of the financing include an option that would require the investor to pay up to $1.25 million more, depending on whether the company achieves certain development milestones. In exchange, the investor would then earn up to 9.25% of the gross revenue from LumiSort, an instrument-based livestock sex selection technology.
Based in Toronto, Microbix specializes in the development and commercialization of biological technologies.
| Issuer: | Microbix Biosystems Inc.
|
| Issue: | Secured convertible debenture
|
| Amount: | C$1.5 million
|
| Coupon: | 9%
|
| Conversion price: | C$0.35
|
| Warrants: | No
|
| Settlement date: | Feb. 20
|
| Stock symbol: | Toronto: MBX
|
| Stock price: | C$0.49 at close Feb. 19
|
| Market capitalization: | C$34.01 million
|
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