Telo Genomics arranges $1.2-million debenture financing

Executive Summary

• Telo Genomics Corp. announced a non-brokered private placement of secured convertible debentures with gross proceeds of up to $1.2 million.
• The financing includes significant equity upside via warrants, with two million detachable warrants issued for every $100,000 of debentures.
• Proceeds are designated for lab trials and general working capital, subject to TSX Venture Exchange approval.

Key Details

• Instrument: Secured convertible debentures.
• Gross Proceeds: Up to $1,200,000.
• Interest Rate: 15% per annum, compounded quarterly.
• Maturity: Nine months after the closing date.
• Conversion Terms: Convertible into common shares at a price of $0.05 per share at the holder's election prior to maturity.
• Warrant Terms: For every $100,000 of debentures issued, the company will issue 2,000,000 detachable warrants.
• Warrant Exercise Price: $0.08 per common share.
• Warrant Term: 12 months from the closing date.
• Prepayment: The company has no right to prepay the debentures prior to maturity.
• Use of Proceeds: Lab trials and general working capital.
• Conditions: Subject to receipt of necessary approvals from the TSX Venture Exchange.
• Hold Period: Four-month hold period applies to debentures, warrants, and any securities issuable upon conversion or exercise.
• Finder's Fees: The company may pay finders' fees in connection with the offering.

Notable Quotes

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