Innocan Pharma Announces Closing of First Tranche Private Placement and Provides Corporate Update

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HERZLIYA, Israel and CALGARY, Alberta, Oct. 12, 2023 /PRNewswire/ -- Innocan Pharma Corporation (the "Company") (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) is pleased to announce that it has closed the first of two tranches (the "First Tranche") of its previously announced private placement offering (the "Offering") of units of the Company (the "Units"), pursuant to which the Company issued 1,420,200 Units at a price of $0.30 per Unit (the "Offering Price") for aggregate gross proceeds of $426,060. The Company expects to complete a second and final tranche of the Offering in the following week. 

 

The Offering is led by Research Capital Corporation as sole agent and sole bookrunner (the "Agent").

Each Unit is comprised of one common share of the Company (a "Common Share") and one purchase warrant of the Company (a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.36 for a period of 36 months from the closing of the First Tranche.

The Company intends to use the net proceeds from the Offering to fund the Company's pre-investigational new drug meeting with the United States Food and Drug Administration (the "FDA") regarding the human application of the Company's products (the "Pre-IND Meeting"); the investigational new animal drug meeting with the FDA regarding the veterinary application of the Company's products; and (iii) for the expansion of the Company's derma-cosmetic product distribution.

The Units issued under the First Tranche were offered to purchasers pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions ("NI 45-106"). The Units are not subject to resale restrictions pursuant to applicable Canadian securities laws. The Broker Warrants (as defined below) are subject to a statutory four-month hold period pursuant to applicable Canadian securities laws.

In connection with the First Tranche, the Agent received an aggregate cash fee equal to $34,084.80. In addition, the Company issued to the Agent 113,616 non-transferable broker warrants (the "Broker Warrants"). Each Broker Warrant entitles the holder thereof to purchase one Unit at an exercise price equal to the Offering Price for a period of 36 months following the closing date of the First Tranche.