Mydecine Innovations Group Files Preliminary Prospectus in Connection with Bought Deal Offering of Units
Mydecine Innovations Group (CSE: MYCO) (OTC: MYCOF) (FSE: 0NFA) (“Mydecine” or the “Company’), an emerging biopharma and life sciences company committed to the research, development, and acceptance of alternative nature-sourced medicine for mainstream use, is pleased to announce that, in connection with its bought deal offering (the “Offering”) previously announced on January 14, 2021, it has filed a preliminary short form prospectus (the “Preliminary Prospectus”) with the securities commissions or similar authorities in each province of Canada, other than Quebéc, and entered into an underwriting agreement with Canaccord Genuity Corp. (the “Underwriter”) dated January 20, 2021 (the “Underwriting Agreement”).
Pursuant to the Underwriting Agreement, the Underwriter has agreed to purchase, on a bought deal basis, an aggregate of 30,000,000 units of the Company (the “Units”) at a price of C$0.50 per Unit (the “Issue Price”) for aggregate gross proceeds to the Company of C$15,000,000 (the “Offering”). Each Unit will be comprised of one common share in the capital of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will be exercisable to acquire one Common Share (a “Warrant Share”) for a period of 36 months following the Closing Date at an exercise price of $0.70 per Warrant Share. The Company also granted the Underwriter an over-allotment option to purchase up to an additional 4,500,000 Units at the Issue Price for a period of 30 days following the Closing. If the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering will be C$17,250,000.
Pursuant to the Underwriting Agreement, the Underwriter shall be paid (i) a cash commission equal to 7.0% of the aggregate gross proceeds of the Offering and (ii) such number of warrants equal to 7.0% of the aggregate number of Units issued pursuant to the Offering, with each warrant exercisable at any time prior to the date that is 36 months from the Closing Date to acquire one Unit at the Issue Price. Additionally, the Company shall pay the Underwriter a corporate finance fee equal to that number of Units which is equal to 2.5% of the aggregate number of Units issued pursuant to the Offering.