By Abigail W. Adams
Portland, Me., Nov. 24 – Valeo Pharma Inc. priced an upsized C$15 million 12% convertible debentures due 2024 on Wednesday at par with a conversion price of C$1.15, according to a company press release.
The issue size was initially set at C$10 million.
Desjardins Capital Markets was bookrunner for the offering, which was marketed to accredited investors in Canada, the United States and other jurisdictions internationally.
The offering was initially planned to carry a greenshoe of C$1.5 million. The updated release did not specify whether the greenshoe was also enlarged.
Concurrently, the company placed C$10 million 12% convertible debentures due 2024 with Investissement Quebec, which carry the same terms as the offering.
Gross proceeds from the concurrent offerings are expected to be C$25 million, assuming no exercise of the greenshoe.
Proceeds will be used for the commercialization of the company’s products, to pre-fund the reimbursement of the company’s convertible debentures due Jan. 31, 2022 and July 10, 2022, and for general corporate purposes.
Valeo Pharma is a Montreal-based pharmaceutical company.
| Issuer: | Valeo Pharma Inc.
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| Amount: | C$15 million
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| Greenshoe: | C$1.5 million
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| Securities: | Convertible debentures
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| Maturity: | Dec. 31, 2024
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| Bookrunner: | Desjardins Capital Markets
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| Coupon: | 12%
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| Price: | Par
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| Conversion price: | C$1.15
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| Pricing date: | Nov. 24
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| Settlement date: | Dec. 9
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| Distribution: | Accredited investors in Canada, the U.S. and internationally
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| Stock symbol: | CSE: VPH
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| Stock price: | C$0.72 at market close Nov. 24
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| Market capitalization: | C$52.78 million
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