Spectral Medical Inc. Announces C$5 Million Bought Deal Convertible Note Financing
10 August 2023 - 1:00PM
Spectral Medical Inc. (TSX:EDT) (the
"
Company" or "
Spectral"), is
pleased to announce that it has entered into an agreement with
Paradigm Capital Inc. (the “
Underwriter”), in
connection with a bought deal private placement of convertible
notes (the “
Offering”) for gross proceeds of
approximately C$5 million, consisting of the sale of 9% convertible
notes of the Company (the “
Convertible Notes”) at
a price of US$1,000 per Convertible Note.
The Company has granted the Underwriter with an
option to sell up to that number of additional Notes equal to 15%
of the base Offering size, on the same terms and conditions as set
out herein, exercisable in whole or in part at any time, 48 hours
prior to the Closing Date (as defined below).
The net proceeds from the Offering are expected
to be primarily used by the Company on its Phase III registration
trial (Tigris) for its PMX treatment for endotoxemic septic shock
and for general corporate and working capital purposes.
The Offering is expected to close on or about
August 30, 2023 (the “Closing Date”) and will be
subject to regulatory approvals and customary closing conditions,
including listing of the common shares issuable upon conversion of
the Notes on the Toronto Stock Exchange.
The securities have not been, and will not be,
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any U.S. state securities
laws, and may not be offered or sold in the United States without
registration under the U.S. Securities Act and all applicable state
securities laws or compliance with the requirements of an
applicable exemption therefrom. This press release does not
constitute an offer to sell or the solicitation of an offer to buy
securities in the United States, nor may there be any sale of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Spectral Medical Inc.
Spectral is a Phase 3 company seeking U.S. FDA
approval for its unique product for the treatment of patients with
septic shock, Toraymyxin™ (“PMX”). PMX is a therapeutic
hemoperfusion device that removes endotoxin, which can cause
sepsis, from the bloodstream and is guided by the Company’s
Endotoxin Activity Assay (EAA™), the only FDA cleared diagnostic
for the risk of developing sepsis.
PMX is approved for therapeutic use in Japan and
Europe, and has been used safely and effectively on more than
340,000 patients to date. In March 2009, Spectral obtained the
exclusive development and commercial rights in the U.S. for PMX,
and in November 2010, signed an exclusive distribution agreement
for this product in Canada. In July 2022, the U.S. FDA granted
Breakthrough Device Designation for PMX for the treatment of
endotoxemic septic shock. Approximately 330,000 patients are
diagnosed with septic shock in North America each year.
Spectral is listed on the Toronto Stock Exchange
under the symbol EDT. For more information please visit
www.spectraldx.com.
Forward-looking Information Cautionary
Statement
Information in this news release that is not
current or historical factual information may constitute
forward-looking information within the meaning of securities laws.
Implicit in this information, particularly in respect of the future
outlook of Spectral and anticipated events or results, are
assumptions based on beliefs of Spectral's senior management as
well as information currently available to it. While these
assumptions were considered reasonable by Spectral at the time of
preparation, they may prove to be incorrect. Readers are cautioned
that actual results are subject to a number of risks and
uncertainties, including the company’s ability to raise capital and
the availability of funds and resources to pursue R&D projects,
the recruitment of additional clinical trial sites, the rate of
patient enrollment, the successful and timely completion of
clinical studies, the success of Baxter’s commercialization
efforts, the ability of Spectral to take advantage of business
opportunities in the biomedical industry, the granting of necessary
approvals by regulatory authorities as well as general economic,
market and business conditions, and could differ materially from
what is currently expected.
The TSX has not reviewed and does not accept
responsibility for the adequacy or accuracy of this statement.
For further information, please contact:
Blair McInnis |
Ali Mahdavi |
Chief Financial Officer |
Capital Markets & Investor Relations |
Spectral Medical Inc. |
Spinnaker Capital Markets Inc. |
416-626-3233 |
416-962-3300 |
bmcinnis@spectraldx.com |
am@spinnakercmi.com |
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