VANCOUVER, Sept. 26, 2019 /CNW/ - Cognetivity Neurosciences Ltd. (the "Company" or "Cognetivity") (CSE: CGN; FWB: 1UB; OTCQB: CGNSF) announced that the Company has entered into a convertible loan agreement with the CEO and Director of the Company and issued a convertible note (the "Note") in the aggregate principal amount of C$164,110.
The Note bearing interest at 8% per annum, matures 12 months from the date of issuance (the "Maturity Date"). At any time prior to the Maturity Date on at least 10 days prior written notice to the Company, the lender may, in its sole discretion, elect to convert all, but not less than all, of the principal amount, all accrued and unpaid interest and all other amounts due by the Company to the lender pursuant to the Note (the "Indebtedness") into a number of units of the Company (the "Units") equal to the quotient of the Indebtedness and C$0.13. Each Unit will be comprised of one common share of the Company (a "Share") and one share purchase warrant (a "Warrant") of the Company. Each Warrant entitles the holder thereof to acquire one Share at C$0.15 per Share for two years.
The Note and all securities issued in connection with the Note will be subject to a statutory hold period of four months and a day from the date of issuance in accordance with applicable securities law.
This constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance to such insiders is exempt from the formal valuation and the minority shareholder approval requirements of MI 61-101 as the fair market value of the Note that will be issued will not exceed 25% of the Company's market capitalization.
ABOUT COGNETIVITY NEUROSCIENCES LTD.
Cognetivity is a technology company developing a cognitive testing platform, the Integrated Cognitive Assessment (ICA) for use in medical, commercial and consumer 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 ongoing clinical studies to the market in North America, Europe and elsewhere in the world.
For more information please visit – www.cognetivity.com
ON BEHALF OF THE BOARD
Chief Executive Officer and Director
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release
SOURCE Cognetivity Neurosciences Ltd