Tetra Bio-Pharma Inc. announces revised terms of financing with Alpha Blue Ocean
by CM Staff
The Investor has now agreed to purchase up to $10M aggregate principal amount of convertible debentures instead of up to $6M principal amount of Debentures as initially agreed upon.
OTTAWA — Tetra Bio-Pharma Inc., a manufacturer of cannabinoid-based drugs, announced that the Company has revised the terms of its previously announced financing arrangement with Global Corporate Finance Opportunities 16, an investment vehicle advised by Alpha Blue Ocean, and has closed the first tranche of the Financing on such revised terms, the whole pursuant to the terms of an amended and restated subscription agreement dated September 2, 2022.
Pursuant to the terms of the Amended and Restated Subscription Agreement, the Investor has now agreed to purchase up to $10,000,000 aggregate principal amount of convertible debentures instead of up to $6,000,000 principal amount of Debentures as initially agreed upon. In addition, the Company has agreed to a revised fee structure, whereby the Company has paid to the Investor a commitment fee equal to 8% of the total commitment of the Investor, paid as to 3% through the issuance of $300,000 principal amount of Debentures and as to 5% through the issuance of 7,776,050 common shares having an aggregate value of $500,000. The terms of the Financing announced on August 11, 2022 otherwise remain unchanged in all material respects.
As part of the closing of the first tranche of the Financing, the Company issued to the Investor (i) $400,000 principal amount of Debentures, (ii) the Commitment Debentures, (iii) the Commitment Shares, and (iv) warrants to acquire 1,196,172 common shares at a price of $0.0836 per share (the “Warrants”). The Debentures issued as part of the first tranche do not bear interest and will mature on September 7, 2023. The Warrants issued as part of the first tranche have an expiry date of September 7, 2025.
The Company intends to use the net proceeds of the Financing to finance the manufacturing costs of its QIXLEEF drug candidate, to repay indebtedness and for working capital.