Perimeter Medical Imaging AI Provides Update on Exercise of Warrants
Perimeter Medical Imaging AI, Inc. (TSX-V:PINK)(OTC:PYNKF) (FSE:4PC) (“Perimeter” or the “Company”), a medical technology company driven to transform cancer surgery with ultra-high-resolution, real-time, advanced imaging tools to address areas of high unmet medical need, today provided an update on its previously announced acceleration of the expiry date of the share purchase warrants issued by the Company on June 29, 2020 (the “Warrants”).
Jeremy Sobotta, Perimeter's Chief Executive Officer, stated, “We are pleased to report that approximately 3.1 million out of a total of 3.5 million Warrants subject to the accelerated expiry have already been exercised. Since our last financial report, as a result of the exercise of Company warrants, we have added approximately $7.3 million to our balance sheet, which will help enable our commercialization and development plans. These funds will contribute to bringing Perimeter’s novel medical imaging to market – with the aim of creating better outcomes for patients and lower costs to the healthcare system.”
Since February 1, 2021, when the Company announced the accelerated expiry date of the Warrants, 2,353,511 of the outstanding eligible Warrants with an accelerated expiry date have been exercised, resulting in cash proceeds of approximately $4,707,022 to the Company. As of February 25, 2021, a total of 341,064 eligible Warrants subject to the accelerated expiry date remain outstanding, which would result in additional gross proceeds of $682,128 if exercised. However, there can be no assurance that any or all of the remaining eligible Warrants will be exercised prior to March 8, 2021.
Inclusive of the $4,707,022 in gross proceeds from the exercise of accelerated Warrants noted above, subsequent to the Company’s third quarter results ending September 30, 2020, as of February 25, 2021, a total of 3,691,474 warrants have been exercised, resulting in gross proceeds of approximately $7,285,796 to the Company.
More Information about the Acceleration of the Expiry Date of Warrants Issued on June 29, 2020
On February 1, 2021, the Company announced it had elected to exercise its right under the terms of a warrant indenture dated June 29, 2020 (the “Warrant Indenture”) between the Company and Computershare Trust Company of Canada (the “Warrant Agent”) to accelerate the expiry date of the warrants to purchase common shares of the Company (“Common Shares”) issued on June 29, 2020 to investors in Perimeter’s private placement financing of units completed on that day (the “Warrants”). Each Warrant is exercisable to acquire one Common Share at an exercise price of $2.00. The expiry date of the Warrants has been accelerated to 4:00 p.m. (Toronto Time) on March 8, 2021. Pursuant to the Warrant Indenture, the Company has the right to accelerate the expiry date of the Warrants to a date that is 30 days following delivery of an Acceleration Notice (as described in the Warrant Indenture) if, the 15-day volume-weighted average trading price of the Common Shares on the TSX Venture Exchange (the “TSXV”) equals or exceeds $3.00. The Company calculates that, between January 11, 2021 and January 29, 2021, the 15-day volume-weighted average trading price of the Common Shares on the TSXV was $3.0860.