By Susanna Moon
Chicago, Oct. 17 - Response Biomedical Corp. said that, due to changing market conditions, it has revised the terms of its C$5.5 million private placement of units, announced Oct. 14.
The company will now sell 36.67 million units at C$0.15 per unit. The company had planned to issue 30,555,556 units of one common share and one half-share warrant at C$0.18 each on a best-efforts basis.
Each whole warrant is exercisable at C$0.20, down from C$0.25 originally, for three years.
Changes require approval of the Toronto Stock Exchange.
Haywood Securities Inc. is the agent.
Proceeds will be used to manufacture product for the launch of the flu test partnered with 3M Medical and the cardiovascular line partnered with Roche Diagnostics as well as for the company's day-to-day operations.
"We have implemented cost cutting measures and are in the process of implementing further cost cutting measures to extend our cash runway, while preserving our core business," S. Wayne Kay, chief executive officer said in a press release.
"We have financial commitments from our partners and we believe their support coupled with this financing will assist us in weathering the current state of the financial markets."
Based in Vancouver, B.C., Response develops diagnostic tests for clinical and environmental applications.
| Issuer: | Response Biomedical Corp.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$5.5 million
|
| Units: | 36.67 million
|
| Price: | C$0.15
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.20
|
| Agent: | Haywood Securities Inc.
|
| Pricing date: | Oct. 14
|
| Stock symbol: | Toronto: RBM
|
| Stock price: | C$0.19 at close Oct. 14
|
| C$0.15 at close Oct. 17
|
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