Biosign Technologies Inc. (CNQ: BIOS) announces it has arranged a best-efforts, non-brokered private placement to raise gross proceeds of $2 million to be led by Avro Capital Corp. and Global Securities Corporation.
The Offering consists of a minimum of 5,714,286 units priced at $0.35 per Unit to raise a minimum gross proceeds of $2 million. Each Unit consists of one common share and one common share purchase warrant, with each warrant exercisable for a period of 18 months from the closing of the tranche, to acquire one common share at an exercise price of $1.20 per common share.
The warrants are subject to an acceleration clause whereby the Company has the right to accelerate the exercise of the options via a press release notice should the share price exceed $1.90 for seven consecutive trading days. The "Agents" will receive a finders' fee commission of a maximum cash compensation of 10% of the gross proceeds raised, and maximum compensation options equal to 10% of the aggregate number of Units sold pursuant to the Offering. Each compensation option will entitle the holder thereof to purchase one common share at an exercise price of $0.35 per common share for a period of 24 months from the closing of the applicable tranche.
The Company also announces that Avro and Global have closed on the first tranche of the Offering by completing $525,000 of gross proceeds of the financing and that Global is intending to complete a $1 million financing on a best efforts basis.
Proceeds from the Offering will be used to fund the Company's 2008-09 commercialization and partnering plans, as well as additional research and development of the company's metering products.
The common shares and warrants to be issued in connection with this Offering will be subject to a four month hold period from the share issuance date in accordance with the policies of the Canadian Trading and Quotation System Inc. and applicable securities laws. -- www.cnxmarketlink.com
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