Kane Biotech Announces Private Placement Offering and Proposed Amendments to its Credit Facility

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WINNIPEG, Manitoba, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Kane Biotech Inc. (TSX-V:KNE OTCQB:KNBIF) (the “Company”, “Kane” or “Kane Biotech”) today announces its intention to undertake a non-brokered private placement offering (the “Offering”) of up to 6,250,000 units of the Company (“Units”) at a price of $0.08 per Unit for gross proceeds of up to $500,000. Each Unit shall be comprised of one common share of the Company (a “Share”) and one-half of one Share purchase warrant (each whole warrant, a “Warrant”). Each full Warrant shall entitle the holder thereof to purchase one additional Share of the Company for a period of 18 months at an exercise price of $0.10 per Share.

After a period of four months from the closing date of the Offering, in the event that the Shares traded on the TSX Venture Exchange (the “TSXV”) have a closing price at or exceeding $0.20 per Share for five (5) consecutive trading days, the Company reserves the right to call the Warrants, at their exercise price of $0.10 per Warrant. If the Company wishes to call the Warrants, the Company must provide written notice to the holders of the Warrants that it is calling the Warrants. Investors will have thirty (30) days from the date of such notice to exercise the Warrants and, in the event that any Warrants are not exercised, such Warrants shall be cancelled. Holders of Warrants shall be restricted from exercising any number of Warrants that will cause the holder to own such number of Shares that will equal or exceed 20% of the then issued and outstanding Shares.

The net proceeds of the Offering will be used for working capital and general corporate purposes.

All securities issued in connection with the Offering will be subject to a hold period of four-months and one day in Canada. The closing of the Offering is subject to TSXV and other regulatory approvals. The Company may pay finder's fees in connection with the Offering consisting of a cash commission equal to 8% of the gross proceeds raised and finder's warrants equal to 8% of the number of Units issued, where each finder's warrant will entitle the holder thereof to purchase one Unit at a price of $0.10 per Unit for a period of 18 months from the closing of the Offering.