Defence Therapeutics closes debenture unit financing

Executive Summary

• Defence Therapeutics Inc. has closed a fully subscribed non-brokered private placement of debenture units, raising aggregate gross proceeds of $2,000,000.
• The offering was upsized from an initial target of $1.2 million to $2 million following approval from the Canadian Securities Exchange.
• Proceeds are intended to advance science programs and provide general working capital.

Key Details

• Transaction Structure: Non-brokered private placement of debenture units.
• Price: $1,000 per unit.
• Gross Proceeds: $2,000,000 (upsized from $1,200,000).
• Unit Composition: Each unit consists of:
  • One $1,000 principal amount 8.0% convertible debenture.
  • 1,666 common share purchase warrants.
• Debenture Terms:
  • Interest Rate: 8.0% per annum.
  • Maturity Date: September 15, 2027.
  • Security: Unsecured, ranking pari passu with existing and future unsecured indebtedness.
  • Conversion Price: 60 cents per share.
  • Interest Payment: Accrued interest paid annually in shares (at conversion price) or cash at company's election.
• Warrant Terms:
  • Exercise Price: 75 cents per warrant share.
  • Expiration: September 15, 2027.
  • Ratio: One warrant per unit (1,666 warrants per unit).
• Finder’s Fees:
  • Cash Fees: $160,000 paid to qualified arm's-length finders.
  • Warrants Issued: 266,667 finders' warrants.
  • Finder's Warrant Terms: Exercisable into one share at 75 cents per share, expiring September 15, 2027.
• Use of Proceeds: Advance science programs and general working capital.
• Hold Period: Securities subject to a statutory hold period of four months plus one day from the date of issue.

Notable Quotes

• None provided in the text.