By Sheri Kasprzak
New York, Nov. 23 - Tm Bioscience Corp. has completed its previously announced private placement of a secured convertible term note for $9 million.
Laurus Master Fund, Ltd. bought the note, which bears interest at the greater of Prime plus 200 basis points or 8.5% and matures in three years.
The coupon rate will decrease in relation to increases in the company's share price over the term of the note to a minimum of 0%.
The note will be repaid in equal installments over 33 months.
The investor must convert the notes into shares if the company's stock price exceeds 127%, 138% and 150% of the price of the shares at the closing of the transaction for each one-third repayment of the note. The fixed conversion price for each third will be 110%, 120% and 130%, respectively.
Laurus received warrants for 738,723 shares, exercisable at $2.61 each for five years.
The offering was first announced Nov. 7 as an $8 million offering under the same terms.
Canaccord Capital Corp. and Versant Partners were the placement agents for the offering.
Toronto-based Tm Bioscience is a diagnostics company focused on a suite of genetic tests, including tests for genetic disorders, drug metabolism and infectious diseases.
| Issuer: | Tm Bioscience Corp.
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| Issue: | Convertible note
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| Amount: | $9 million
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| Maturity: | Three years
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| Coupon: | The greater of Prime plus 200 basis points or 8.5%
|
| Conversion price: | 110%, 120% and 130% of the price per share on the day the respective one-third payment of principal and interest is due
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| Warrants: | For 738,723 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.61
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| Placement agents: | Canaccord Capital Corp., Versant Partners
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| Announcement date: | Nov. 7
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| Settlement date: | Nov. 23
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| Stock price: | $2.22 at close Nov. 4
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| Stock price: | $1.8775 at close Nov. 22
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