Non-brokered offering sells 1,785,716 common shares at $0.56 apiece
By Devika Patel
Knoxville, Tenn., June 20 – Response Biomedical Corp. said on Friday that it raised $500,000 in the first tranche of a $1 million non-brokered private placement of stock. The deal priced on June 16.
The company is selling 1,785,716 common shares at $0.56 per share. It sold 892,858 shares to OrbiMed Advisors LLC in the first tranche and will sell 892,858 shares to Runda Medical Technology Co., Ltd. in the second tranche.
Proceeds will be used for research and development and operating expenses and general working capital purposes.
The company also said that it has entered into a definitive agreement with 1077801 B.C. Ltd., under which 1077801 B.C. will acquire all of Response’s outstanding common shares for C$1.12 per share in cash. The cash consideration price represents a 51% premium to the closing price of the shares on June 15.
Based in Vancouver, B.C., Response develops diagnostic tests for clinical and environmental applications.
| Issuer: | Response Biomedical Corp.
|
| Issue: | Common shares
|
| Amount: | $1,005,000
|
| Shares: | 1,785,716
|
| Price: | $0.56
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | OrbiMed Advisors LLC (for $500,000), Shanghai Runda Medical Technology Co., Ltd. (for $500,000)
|
| Pricing date: | June 16
|
| Settlement date: | June 17 (for $500,000)
|
| Stock symbol: | Toronto: RBM
|
| Stock price: | C$0.74 at close June 15
|
| Market capitalization: | C$10.82 million
|
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