Kalytera Announces Escrowed Closing of Private Placement of Common Shares and Common Share Purchase Warrants

SAN FRANCISCO, July 24, 2020 (GLOBE NEWSWIRE) -- Kalytera Therapeutics, Inc. (TSX VENTURE: KLY and OTC: KALTF) (the "Company" or "Kalytera") announced today that on and effective July 22, 2020 it has closed in escrow its previously announced non-brokered private placement (the “Private Placement”) of units comprised of common shares (“Shares”) and one half common share purchase warrants (“Warrants”) in the capital of the Company in the amount of gross proceeds of $317,970.49 from the issuance of 21,198,033 Shares and 10,599,017 Warrants.  

Each unit had a purchase price of $0.015 per unit. Each full common share purchase warrant will have an exercise price of CDN $0.05, and a term of 24 months. At any time on or after the date that is 4 months from the closing date, if the daily volume weighted average trading price of the common shares on the TSX Venture Exchange (the “TSXV”) equals or exceeds $0.10 CAD for a period of at least 10 consecutive trading days, the Company shall be entitled to accelerate the expiration date of the Warrants to the date that is 30 days from the date that notice of such acceleration is given. From and after the new accelerated expiration date, no Warrant may be exercised, and all unexercised Warrants shall be void.  The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended or any U.S. state securities laws, and any securities issued to US Persons are restricted securities subject to an indefinite hold period unless traded in compliance with applicable exemptions. US investors should contact the Company for more details and discuss applicable exemptions with their legal or financial advisor(s).

The Private Placement is subject to the final acceptance of the TSX Venture Exchange, and all securities issued pursuant to the placement are subject to a four-month and one-day hold period in compliance with Canadian securities laws.

The company is paying a cash commission of 8% of the gross proceeds raised and closed in respect of the offering to Echelon Wealth Partners Inc. with respect of the funds raised by it, and broker’s warrants to this finder, exercisable within 30 months following the relevant closing date, to acquire in aggregate that number of common shares which is equal to 8% of the number of units sold under the offering with respect of the funds raised by it, which warrants expiry 30 months from issuance (closing date of July 22, 2020) and are exercisable at $0.05 per warrant.  With respect of the Private Placement, Echelon Wealth Partners Inc. is receiving a cash finder fee of $20,000.04 and 1,333,336 broker warrants. Except for the mentioned commission and warrants to  Echelon Wealth Partners Inc., no bonus, finder’s fee, commission, agent’s option, or similar compensation, whether in cash or securities, has been paid or is payable in connection with the Private Placement.