Receipts will convert into units of one share, one half-share warrant
By Devika Patel
Knoxville, Tenn., Sept. 26 - Response Biomedical Corp. said it will conduct a C$4 million private placement of subscription receipts.
The company will sell the receipts, which convert into units of one common share and one half-share warrant, at C$2.45 per receipt.
Each whole warrant is exercisable at C$3.58 for three years. The strike price is a 37.69% premium to the Sept. 25 closing share price of C$2.60.
Of the proceeds, C$2 million will be raised on a best-efforts basis by agent Bloom Burton & Co. Inc. The remaining C$2 million will be raised on a non-brokered basis. OrbiMed Advisors LLC will invest C$2 million in the non-brokered sale.
Proceeds will be used for research and development, operating expenses and general working capital.
Based in Vancouver, B.C., Response develops diagnostic tests for clinical and environmental applications.
| Issuer: | Response Biomedical Corp.
|
| Issue: | Subscription receipts convertible into units of one common share and one half-share warrant
|
| Amount: | C$4 million
|
| Price: | C$2.45
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$3.58
|
| Agent: | Bloom Burton & Co. Inc. (for C$2 million), non-brokered (for C$2 million)
|
| Investor: | OrbiMed Advisors LLC (for C$2 million)
|
| Pricing date: | Sept. 26
|
| Stock symbol: | Toronto: RBM
|
| Stock price: | C$2.60 at close Sept. 25
|
| Market capitalization: | C$17.1 million
|
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