KIRKLAND, QC, July 19, 2018 /CNW Telbec/ - Ortho Regenerative Technologies Inc. (CSE: ORTH) ("Ortho RTi" or the "Corporation") is pleased to announce that it has issued a total of 450,000 Class "A" shares (the "Shares") pursuant to the second tranche (the "Second Tranche") of it previously announced non-brokered private placement ("Private Placement").
Pursuant to the Second Tranche, a total of 150,000 of the Shares were sold at a price per share of $0.40 and Manitex Capital Inc. ("Manitex"), an insider of Ortho RTi, converted $120,000 in principal balance owed to the Corporation into 300,000 Shares at a conversion price per share of $0.40. The issuance of the Shares to an insider pursuant to the Second Tranche will be considered a related party transaction within the meaning of Multilateral Instrument 61-101 ("MI 61-101"). The Corporation intends to rely on the exemptions from valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(b) of MI 61-101 in respect of Manitex' participation.
Including the initial tranche of the Private Placement (the "First Tranche"), as a whole the Private Placement resulted in the issuance by the Corporation of a total of 4,060,000 Shares at $0.40 per Share for total gross proceeds of $1,624,000, including Manitex' debt conversion.
"This financing provides us with the necessary resources to continue to work towards the submission of an Investigational New Drug application to the U.S. Food and Drug Administration to bring our ground-breaking Ortho-R technology into the clinic," said Dr. Brent Norton, Ortho RTi's Executive Chairman and CEO. "We look forward to updating all of our stakeholders as we progress.
The Corporation paid a cash commission of $1,000 and issued 2,500 non-transferable share purchase warrants (the "Finder Warrants"). Each Finder Warrant entitles the holder thereof to acquire one Share at a purchase price of $0.70 for a period of 18 months from the date of issuance of the Finder's Warrants
Net proceeds from the Private Placement will be used to fund research and development costs and for general corporate purposes of the Corporation.
This press release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States. The securities referenced herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States except in compliance with one or more exemptions from the registration requirements of the U.S. Securities Act and applicable securities laws.
About Ortho Regenerative Technologies Inc.
Ortho RTi is an emerging Orthopaedic and Sports Medicine technology company dedicated to the development of novel therapeutic tissue repair devices to dramatically improve the success rate of sports medicine surgeries. Our proprietary biopolymer has been specifically designed to increase the healing rates of sports related injuries to ligaments, tendons and cartilage. The polymer can be directly placed into the site of injury by a surgeon during a routine operative procedure without significantly extending the time of the surgery and without further intervention. Visit us on the internet at www.orthorti.com.
This news release may contain certain forward-looking statements regarding the Corporation's expectations for future events. Such expectations are based on certain assumptions that are founded on currently available information. If these assumptions prove incorrect, actual results may differ materially from those contemplated by the forward-looking statements contained in this press release. Factors that could cause actual results to differ include, amongst others, uncertainty as to the final result and other risks. The Corporation disclaims any intention or obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, other than as required by security laws.
SOURCE Ortho Regenerative Technologies Inc.
For further information: Stephen Kilmer, Investor & Media Relations, 647.872.4849, [email protected]