Defence arranges $1.2-million debenture unit offering

Executive Summary

• Defence Therapeutics Inc. has arranged a non-brokered private placement of debenture units to raise up to $1.2 million in aggregate gross proceeds.
• Each unit consists of a $1,000 principal amount 8.0% convertible debenture and 1,666 common share purchase warrants.
• The debentures mature in two years, carry an 8.0% annual interest rate, and are convertible into common shares at 60 cents per share.

Key Details

• Transaction Structure: Non-brokered private placement of debenture units.
• Price: $1,000 per unit.
• Gross Proceeds: Up to $1.2 million.
• Unit Composition:
  • One $1,000 principal amount of 8.0% convertible debenture.
  • 1,666 common share purchase warrants.
• Debenture Terms:
  • Interest Rate: 8.0% per annum.
  • Maturity: Two years following the issue date.
  • Security Status: Unsecured, ranking pari passu with existing and future unsecured indebtedness.
  • Conversion Price: 60 cents per common 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.
  • Term: Two years from the issue date.
  • Rights: Exercisable to acquire one common share per warrant.
• Regulatory/Conditions:
  • Statutory hold period: Four months and one day following closing.
  • Completion subject to regulatory approvals.
  • Company may pay finder's fees to eligible arm's-length finders.

Notable Quotes

• None provided in the text.