Khiron Life Sciences Corp. (“Khiron” or the “Company“) (TSXV: KHRN) (OTCQX: KHRNF) is pleased to announce that it has closed its offering to U.S. institutional investors of 27,435,000 units of the Company (the “Offered Units“), at a price of $0.45 per Offered Unit, for aggregate gross proceeds to the Company of $12,345,750, as previously announced on July 5, 2021 and July 6, 2021 (the “Offering“).
Alvaro Torres, Chief Executive Officer and a director of Khiron, commented: “The successful completion of this financing from U.S. institutional investors will allow us to accelerate our penetration into Mexico and Brazil. We believe that Khiron is the category leader in Colombia for medical cannabis, and this financing will help us to leverage our brand and expertise into these two additional markets, which we believe is a significant opportunity for the Company.”
Each Offered Unit was comprised of one common share and one common share purchase warrant (each a “Warrant“), with each Warrant entitling the holder thereof to purchase one common share of the Company at an exercise price of $0.75 per share expiring on November 26, 2025. The Company intends to use the net proceeds of the Offering for: (i) future acquisitions; (ii) capital expenditures; and (iii) general corporate and working capital purposes.
A.G.P./Alliance Global Partners and ATB Capital Markets Inc. (collectively, the “Placement Agents“) acted as the lead placement agent and co-placement agent, respectively, for the Offering.
The Offering was conducted on a private placement basis to persons in the United States who are “qualified institutional buyers”, as such term is defined in Rule 144A under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), who are also “accredited investors”, as such term is defined in Rule 501(a) of Regulation D under the U.S. Securities Act (“Regulation D“), and, in each case, in compliance with Rule 506(b) of Regulation D and applicable United States securities laws. The Company has also filed a prospectus supplement (the “Prospectus Supplement“) in Canada to its existing Canadian base shelf prospectus (the “Shelf Prospectus“) filed with the securities regulatory authority in each of the provinces and territories of Canada to qualify the common shares issued in the Offering, the Warrants and the common shares issuable upon exercise of the Warrants. A copy of the Prospectus Supplement and the Shelf Prospectus can be found on the Company’s SEDAR profile at www.sedar.com.
The securities offered in the Offering have not been and will not be registered under the U.S. Securities Act or the securities laws of any state of the United States and may not be offered or sold absent such registration or an applicable exemption from such registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Offered Units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. The securities referenced herein have not been approved or disapproved by any regulatory authority.
