Innocan’s largest shareholder Tamar Innovest purchased nearly 3.9 million units representing approximately 19.6% ownership of the company
Innocan Pharma Corporation () said it had closed a $5.1 million prospectus offering that will go towards research and development on its CBD drug delivery platforms.
The financing was comprised of just over 28.4 million units priced at $0.18 per unit, consisting of one share and one warrant exercisable at $0.25 for a three-year period.
Other proceeds will be used for sales and marketing expenses, operating costs and general corporate purposes.
READ: Innocan Pharma amends unit price of $10M offering
Innocan’s largest shareholder Tamar Innovest Limited purchased nearly 3.9 million units worth around $700,000, giving it approximately 19.6% ownership of the company.
The offering was led by Mackie Research Capital Corporation as sole bookrunner and Cannacord Genuity Corp acting as co-lead agents with Haywood Securities Inc and PI Financial Corp. Innocan granted the agents an over-allotment option, exercisable for up to 30 days from the closing of the offering, to increase the size of the placement by up to 15% of the number of units sold.
The offering includes an acceleration clause whereby if the daily volume weighted average trading price of Innocan shares equals or exceeds $0.50 for 20 consecutive days, the company may hasten the expiry date of the warrants to 30 days following the acceleration notice.
Israel-based Innocan Pharma is a specialty pharmaceutical company which develops products that harness the properties of cannabinoids combined with smart delivery formulations.
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