PreveCeutical Closes Second Tranche of Non-Brokered Private Placement

Executive Summary

• PreveCeutical Medical Inc. closed the second tranche of its $1,200,000 non‑brokered private placement, issuing 11,375,000 units at $0.04 per unit for gross proceeds of $455,000.
• Each unit consists of one common share and half of a share purchase warrant (exercise price $0.06, 24‑month term) with an acceleration feature tied to the CSE share price.
• The company paid $29,200 in cash finder’s fees and issued 730,000 finder’s warrants; proceeds are earmarked for outstanding payables, operating expenses, and general working capital.

Key Details

• Units Issued: 11,375,000 units @ $0.04 per unit → Gross Proceeds: $455,000.
• Unit Composition: 1 common share + ½ share purchase warrant (full warrant exercisable for one additional share at $0.06).
• Warrant Terms: 24‑month expiry from second tranche closing; acceleration right if CSE price ≥ $0.18 for ten consecutive trading days, after which unexercised warrants expire 30 days post‑notice.
• Finder’s Compensation: $29,200 cash paid to three eligible finders plus issuance of 730,000 finder’s warrants (exercise price $0.06, 24‑month term, same acceleration provisions).
• Use of Proceeds: Pay outstanding payables, cover operating expenses, and provide general working capital.
• Hold Period: All securities subject to a hold period expiring four months and one day after the closing date.
• Regulatory Notice: Securities not registered under U.S. securities laws; cannot be offered or sold in the United States absent exemption.

Notable Quotes

• “The successful close of this second tranche provides us with essential capital to meet our near‑term obligations and continue advancing our R&D programs,” – Stephen Van Deventer, Chairman and CEO.