Canntab Therapeutics Limited (CSE:PILL) (OTCQB:CTABF) (FRA:TBF1) confirmed Tuesday it has closed a non-brokered private placement of secured convertible debentures of the company, pursuant to which the company issued and will issue debentures for gross proceeds of $1.31 million.
The proceeds will be used to fund working capital for the company, and for general corporate purposes.
The debentures are convertible into common shares of the company at a conversion price of $0.70 per share, and will mature two years from the date of issuance. Beginning on the date that is four months and one day following the closing date of the offering, the company will have the right to prepay or redeem a part or the entire principal amount of the debentures plus any accrued and unpaid interest at any time by providing a minimum of 20 days and a maximum 60 days of redemption notice prior to the redemption date. The conversion price will be subject to customary adjustments in certain events.
The Debentures shall bear interest at a rate of 10% per annum from the Closing Date, paid upfront in cash for the initial 6 months, thereafter payable quarterly in cash on the last business day of each calendar quarter.
Warrant Expiry Extension
In addition, Canntab announced the extension to the expiry date of a total of 5.69 million outstanding common share purchase warrants originally issued as part of a private placement that closed on February 27, 2020 and on March 12, 2020. The prior warrants entitle the holders to purchase one share per prior warrant at a price of $0.75 per share until February 27, 2022 and March 12, 2022, respectively. The company has amended the expiry date of the prior warrants to May 18, 2022. Al
Corporate Update
The company further revealed that Barry Polisuk has resigned as corporate secretary of the company which will reduce the extent of his administrative duties. Canntab has appointed Richard Goldstein, the company's current CFO to fill the vacancy of corporate secretary. Polisuk remains active with the company as its chairman of the board of directors.
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