VANCOUVER, Feb. 11, 2019 /CNW/ - Cognetivity Neurosciences Ltd. (the "Company" or "Cognetivity") (CSE: CGN; FWB: 1UB; OTCQB: CGNSF) announces that it plans to raise up to $2,500,000 by way of a non-brokered private placement (the "Private Placement").
The Private Placement will consist of the sale of up to 6,578,947 units (the "Units") at a price of $0.38 per Unit, each Unit consisting of one common share of the Company (a "Share") and one half common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one additional Share at a price of $0.55 for a period of 18 months from closing. If, commencing on the date that is four months after the date of issue of the Warrants, the weighted average closing price of Company's common shares is equal to or greater than $0.60 for a period of 10 or more consecutive trading days (the "Acceleration Trigger"), the expiry date of the Warrants may be accelerated to the date that is 30 trading days after the date of a news release announcing the Acceleration Trigger.
The net proceeds of the Private Placement will be used for business development and general working capital purposes.
In connection with the Private Placement, the Company has agreed to pay finder's fees.
Closing of the Private Placement is anticipated to occur on or before February 28, 2019 and is subject to receipt of applicable regulatory approvals including approval of the Candian Securities Exchange. All securities will be subject to a four month hold.
About Cognetivity Neurosciences Ltd.
Cognetivity is a technology company developing a cognitive testing platform, the Integrated Cognitive Assessment (ICA) for use in medical and commercial environments. Cognetivity's ICA uses Artificial Intelligence and machine learning techniques to help detect the earliest signs of impairment by testing the performance of large areas of the brain, potentially allowing early diagnosis of dementia. Cognetivity aims to develop the ICA through planned clinical studies to the market in North America and Europe.
For more information please visit – www.cognetivity.com
ON BEHALF OF THE BOARD
Chief Executive Officer and Director
FORWARD LOOKING STATEMENTS:
The forward-looking information contained in this press release is made as of the date of this press release and, except as required by applicable law, the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise, except as may be required by law. By its very nature, such forward-looking information requires the Company to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information.
The Exchange does not accept responsibility for the adequacy or accuracy of this release
SOURCE Cognetivity Neurosciences Ltd