Cardiol Therapeutics arranges $13.5-million bought deal

Executive Summary

• Cardiol Therapeutics Inc. has entered into a bought deal financing agreement for gross proceeds of $13.5 million, selling 10,384,616 units at $1.30 per unit.
• The offering includes an overallotment option allowing the underwriter to purchase up to an additional 1,038,462 units, potentially raising up to $1.35 million more.
• Net proceeds are intended to advance research and clinical development programs, specifically the Maveric and Archer programs, as well as for general and administrative expenses.

Key Details

• Transaction Structure: Bought deal private placement via a sole underwriter/bookrunner.
• Units Sold: 10,384,616 units.
• Price: $1.30 per unit.
• Gross Proceeds: $13.5 million.
• Overallotment Option: Up to 1,038,462 additional units (10% of base) at $1.30 per unit, exercisable up to 48 hours prior to closing, for up to $1.35 million in additional gross proceeds.
• Unit Composition: Each unit consists of one Class A common share and one-half of one common share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to purchase one common share at an exercise price of $1.75. Warrants are exercisable for 24 months from the date of issuance.
• Use of Proceeds: Advancing research and clinical development programs; general and administrative expenses; working capital; and other expenses.
• Closing Date: Scheduled on or about January 23, 2026, subject to TSX approval and negotiation of the underwriting agreement.
• Regulatory Exemption: Conducted under National Instrument 45-106, specifically the Listed Issuer Financing Exemption (Part 5A, CSA Coordinated Blanket Order 45-935).
• Underwriter Commission: 6% of the aggregate gross proceeds paid in cash upon closing.
• Jurisdiction: Qualified investors in Canada (excluding Quebec) and the United States (under available exemptions from the U.S. Securities Act of 1933). Units issued under the listed issuer financing exemption are not subject to resale restrictions in Canada.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.