ONTARIO–Cardiol Therapeutics Inc. (TSX: CRDL), a clinical-stage biotechnology company focused on developing innovative anti-inflammatory therapies for the treatment of cardiovascular disease, is pleased to announce the closing of its previously announced “bought deal” short form prospectus offering of units of the Company for aggregate gross proceeds of approximately $22 million.
The Offering was completed by a syndicate of underwriters led by Raymond James Ltd., as lead underwriter and sole bookrunner and included Leede Jones Gable Inc. and ATB Capital Markets Inc.
Under the Offering, the Company sold a total of 6,112,000 Units at a price of $3.60 per Unit. Each Unit is comprised of one Class A common share of the Company and one-half of one Common Share purchase warrant of the Company. Each Warrant entitles the holder thereof to acquire one Common Share at a price of $4.60 per Warrant Share for a period of 36 months from issuance. The Common Shares trade on the Toronto Stock Exchange under the symbol “CRDL” and the Warrants will commence trading on the TSX under the symbol “CRDL.WT.A”.
The Company intends to use the net proceeds from the Offering to advance the Company’s research and clinical development programs, for additional commercial product development, and for general corporate purposes.
The securities offered 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 applicable U.S. state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. persons” (as such term is defined under Regulation S under the U.S. Securities Act) absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Cautionary statement regarding forward-looking information:
This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, that address activities, events, or developments that Cardiol believes, expects, or anticipates will, may, could or might occur in the future are “forward-looking information.” Forward looking information contained herein may include, but is not limited to, statements relating to: the Company’s focus on developing innovative anti-inflammatory therapies for the treatment of CVD; the intended use of proceeds; and the fact that Cardiol plans to file an IND application. Forward-looking information contained herein reflects the current expectations or beliefs of Cardiol based on information currently available to it and is subject to a variety of known and unknown risks and uncertainties and other factors that could cause the actual events or results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, and are not (and should not be considered to be) guarantees of future performance. These risks and uncertainties and other factors include the risks and uncertainties referred to in the Company’s Annual Information Form dated March 31, 2021, as well as the risks and uncertainties associated with product commercialization, clinical studies, and the risk that the Offering is not completed. These risks, uncertainties and other factors should be considered carefully, and investors should not place undue reliance on the forward-looking information. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Cardiol disclaims any intent or obligation to update or revise such forward-looking information, whether as a result of new information, future events or results or otherwise.
(This information is primarily sourced from Cardiol. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).