Spectral Medical Inc. Announces Proposed Public Offering of Common Shares

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TORONTO, March 05, 2020 (GLOBE NEWSWIRE) -- Spectral Medical Inc. (“Spectral” or the “Company”) (TSX: EDT), a late stage theranostic company advancing therapeutic options for sepsis and septic shock, announced today that it has filed a preliminary short form prospectus (the “Prospectus”) with the securities regulators in each of the provinces of Canada, except Québec (the “Jurisdictions”), in connection with a proposed marketed offering (the “Offering”) of common shares of the Company (the “Offered Shares”). The size and pricing of the Offering will be determined in the context of the market, however it is anticipated that size of the Offering will be up to approximately $10 million.

The Offering will be conducted by Paradigm Capital Inc. (the “Agent”) on a “best efforts” agency basis. The Company has also agreed to grant the Agent with an over-allotment option (the “Over-Allotment Option”) to offer and sell that number of additional Offered Shares as is equal to up to 15% of the number of Offered Shares sold under the Offering to cover over-allotments, if any, and for market stabilization purposes. The Over-Allotment Option will be exercisable in whole or in part, in the sole discretion of the Agent, at any time, and from time to time, for a period of 30 days from and including the closing date of the Offering.

The Company intends to use the net proceeds of the Offering (i) to complete its Phase III registration trial (TIGRIS) for its PMX treatment for endotoxemic septic shock, including data analysis and submission of documentation to the U.S. FDA, and (ii) for general corporate and working capital purposes.

The Offered Shares will be offered for sale in the Jurisdictions pursuant to the Prospectus.  The Offered Shares may also be offered for sale in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and applicable state securities laws, as well as other jurisdictions outside of Canada and the United States as the Company and Agent may agree, on an exempt basis in accordance with applicable securities laws.