Kalytera Announces Escrowed Closing of Private Placement of Common Shares and Common Share Purchase Warrants - Seite 2

The proceeds from the placement will be used to pay audit and accounting fees, insurance premiums and other general and administrative expenses, subject to agreements with creditors.  

Trading Halt

On June 22, 2020, the British Columbia Securities Commission (the “BCSC”) issued a Failure-to-File Cease Trade Order against the Company (the "FFCTO") due to the Company's failure to file by the prescribed filing deadlines its annual financial statements for the year ending December 31, 2019, and the accompanying Management’s Discussion and Analysis and certifications (the “Filings”). Please refer to the Company’s press release of June 30, 2020 for more details. The Company has been granted the Order to commence the Private Placement as an exception to the FFCTO. The Company is working with its auditors, Ernst & Young, to complete the Filings, and anticipates that final approval and posting of the Filings on www.sedar.com will be completed soon. Upon filing of the Filings, the Company will apply to have the FFCTO fully revoked. The Company expects that the FFCTO would be removed prior to the expiration of the customary hold period for private placement offerings that affect all issuers, in which case investors would not be subject to any hold periods beyond what is expected for all private placements.

Purpose of the Private Placement

The funds that have been raised in the Private Placement will be used primarily for the purpose of paying audit and accounting fees that must be paid so that the Company can file its annual financial statements for the year ending December 31, 2019 and the accompanying Management’s Discussion and Analysis and related CEO and CFO certifications (collectively, the “Annual Filings”). Upon filing the Annual Filings, the Company will apply to have the FFCTO revoked, so that trading in the Company's shares on the TSXV will resume.

Salzman Group Acquisition

The Company previously announced that it has entered into a binding Letter of Intent to acquire Salzman Group.  In connection with the acquisition of Salzman Group, the Company anticipates that it will announce the following matters shortly after the Company's shares resume trading:

• Initiation of a contemplated $1.5M private placement or debt financing to provide 6-months working capital, which is a TSXV requirement for close of Salzman Group acquisition, as previously disclosed
• Scheduling of a special meeting of shareholders to approve the acquisition of Salzman Group, as previously disclosed

About Kalytera Therapeutics