Aurora Spine Announces Closing of Private Placement Financing

CARLSBAD, Calif., Feb. 07, 2020 (GLOBE NEWSWIRE) -- Aurora Spine Corporation ("Aurora Spine" or the "Company") (TSX VENTURE:ASG) is pleased to announce that it has closed the final tranche of its non-brokered private placement offering (the "Offering"). Under the final tranche of the Offering, the Company issued 3,432,000 units (the "Units") at a price of CDN$0.25 per Unit for aggregate gross proceeds of approximately CDN$858,000. The aggregate proceeds under the Offering were CDN$2,233,000.

The Company intends to use the proceeds from the Offering for general corporate purposes. Each Unit is comprised of one common share of the Company and one half one common share purchase warrant of the Company. Each whole warrant is exercisable at a price of CDN$0.45 per common share for a period of 36 months following the date of issuance. The Company will pay aggregate finder's fees of CDN$12,000 to compensate finders who introduced purchasers under the final tranche of the Offering.

The securities issued under the Offering will be subject to a four-month hold period in accordance with applicable securities legislation. The Offering is subject to TSX Venture Exchange final approval.

Mr. Rosenkrantz, a director of the Company purchased or acquired direction and control over a total of CDN$394,750 worth of Units under the Offering.  Participation by Mr. Rosenkrantz constitutes a related party transaction as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance of Securities to the related party is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(a) of MI 61-101 and exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(a) of MI 61-101. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders of the Company had not been confirmed at that time.

This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities in the United States. The securities 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 within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.