/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES/
- Insider commitments exceed $1 million in the private placement
MONTREAL, Nov. 6, 2019 /CNW Telbec/ - Valeo Pharma Inc. (CSE: VPH) (the "Company" or "Valeo"), a Canadian specialty pharmaceutical company focused on Neurodegenerative Diseases, Oncology, Women's Health and Hospital Specialty Products, is pleased to announce a non-brokered private placement of up to 4,000 unsecured convertible debentures (the "Debentures") at a price of $1,000 per Debenture for maximum gross proceeds of $4,000,000 (the "Private Placement").
The Debentures will bear interest at a rate of 12% per annum with a maturity date that is 36 months following the closing date. Each $1,000 Debenture will be convertible at a price per Class "A" share of the Company ("Common Shares") equal to $0.40 (the "Conversion Price"), representing 2,500 Common Shares.
"We are pleased to have our insiders lead the way with more than $1 million of subscriptions into our Private Placement. This demonstrates confidence in the Company's ability to deliver the expected value creation catalysts", said Steve Saviuk, Valeo's President and Chief Executive Officer. "This new injection of capital will strengthen our balance sheet and enable the Company to aggressively pursue its in-licensing activities and other commercial and strategic initiatives".
The net proceeds of the Offering will be used to: 1) expand the product portfolio through in-licensing of products including those having received Health Canada approval; 2) expand market access for new products; 3) accelerate regulatory filing activities of products currently in the Company's portfolio; and 4) general corporate purposes.
Closing of the Private Placement is expected to occur on or about November 20, 2019 and is subject to regulatory approval including that of the CSE. The Company may pay finder's fees on the non-insider portion of the Private Placement, in compliance with applicable securities laws. All securities issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation.
The issuance of Convertible Debentures to the insiders will be considered related party transactions within the meaning of Multilateral Instrument 61-101 ("MI 61-101"). The Company intends to rely on the exemptions from the requirements of MI 61-101 in respect of any Insider Participation.
This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.
About Valeo Pharma
Valeo Pharma is a specialty pharmaceutical company dedicated to the commercialization of innovative prescription products in Canada. With a focus on Neurodegenerative Diseases, Oncology, Women's Health and Hospital Specialty Products, Valeo Pharma has a growing portfolio of innovative products and the full infrastructure to properly manage these products through all stages of commercialization. Headquartered in Kirkland, Quebec, Valeo Pharma has all capabilities internally to register and market health care solutions for Canadian patients. For more information, please visit http://www.valeopharma.com and follow us on LinkedIn and Twitter.
Forward Looking Statements
This press release contains forward-looking statements about Valeo's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Valeo Pharma inc.
For further information: Steve Saviuk, President and CEO, 514-693-8830, [email protected]; Luc Mainville, Senior Vice-President and Chief Financial Officer, 514-693-8854, [email protected]; Frederic Dumais, Director, Communications and Investor Relations, 514-782-8803, [email protected]