Kane Biotech Announces Closing of Fully Subscribed Private Placement Offering and Amendments to its Credit Facility

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WINNIPEG, Manitoba, Sept. 12, 2023 (GLOBE NEWSWIRE) -- Kane Biotech Inc. (TSX-V:KNE OTCQB:KNBIF) (the “Company”, “Kane” or “Kane Biotech”) announces that on September 11, 2023 it has fully subscribed and closed its previously announced non-brokered private placement offering (the “Offering”) of units of the Company (“Units”). Kane issued 6,250,000 Units at a price of $0.08 per Unit for aggregate gross proceeds of $500,000. Each Unit is 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 entitles 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 (the “Call Right”). 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 closing of this Private Placement, during a period of very challenging external capital market conditions, comes at an opportune time as we proceed towards three major milestones: (1) The commercial launch of our coactiv+^TM Antimicrobial Wound Gel cleared by the U.S. Food and Drug Administration in May 2023, (2) The kick-off of our U.S. Department of Defense funded Phase 1 clinical trial for our DispersinB Wound Gel and (3) The strategic review of our STEM Animal Health subsidiary,” said Ray Dupuis, Chief Financial Officer.