Company sells common stock, convertible debentures, two-year warrants
By Devika Patel
Knoxville, Tenn., Sept. 6 – Abba Medix Group Inc. said it raised C$6.03 million in a private placement of units.
The deal was conducted on a best-efforts basis in connection with the company’s previously announced planned acquisition of Marijuana for Trauma Inc. and the Longevity Project and priced for between C$6 million and C$10 million on June 30.
The company sold 19,001,000 equity units of one common share and one warrant at C$0.25 per unit.
Abba also sold 1,275 debt units of one 8.5% secured debenture and 1,000 warrants at C$1,000 per unit.
The warrants will be exercisable at C$0.40 for two years. The strike price is a 42.86% premium to the June 4 closing share price of C$0.28.
Mackie Research Capital Corp. was the agent.
Proceeds will be used for the acquisition, working capital and general corporate purposes.
The medical marijuana company is based in Toronto.
| Issuer: | Abba Medix Group Inc.
|
| Issue: | Units of one common share and one warrant, units of an 8.5% secured debenture and 1,000 warrants
|
| Amount: | C$6,025,250
|
| Warrant expiration: | Two years
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| Warrant strike price: | C$0.40
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| Agent: | Mackie Research Capital Corp.
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| Pricing date: | June 30
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| Settlement date: | Sept. 6
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| Stock symbol: | CSE: ABA
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| Stock price: | C$0.28 at close June 4
|
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| Equity units
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| Amount: | C$4,750,250
|
| Units: | 19,001,000
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| Price: | C$0.25
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| Warrants: | One warrant per unit
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|
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| Debt units
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| Amount: | C$1,275,000
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| Units: | 1,275
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| Price: | C$1,000
|
| Coupon: | 8.5%
|
| Warrants: | 1,000 warrants per unit
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