Ventripoint Diagnostics Ltd. (TSX-V: VPT) today announced that it has closed its previously-announced non-brokered private placement of 10,496,938 units at $0.32 per Unit for total gross proceeds of $3,359,020. Existing shareholders subscribed for $1.9M and new shareholders subscribed for $1.4M of the private placement. Each Unit consists of one common share of Ventripoint and one common share warrant, with warrant entitling the holder thereof to acquire one common share at a price of $0.50 per common share for a period of two years after the issuance of the warrant. Ventripoint intends to use the proceeds of the private placement for product development, sales and marketing and general working capital purposes.
"All of us at Ventripoint are thankful to our existing and new shareholders for providing the funding we needed to fully commercialize the VMS-PLUS™ heart analysis system. With these resources, we can market the VMS-PLUS and begin to improve the examination of patients with suspected or known heart disease." - Dr. George Adams, Chief Executive Officer.
Dr. George Adams, the Chief Executive Officer and a Director of the Corporation, subscribed for 312,000 units in the private placement. Such subscription constitutes a Related Party Transaction within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and Policy 5.9 - Protection of Minority Security Holders in Special Transactions of the TSX Venture Exchange. The Corporation is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. A material change report in respect of the Related Party Transaction will be filed by the Corporation but could not be filed earlier than 21 days prior to its completion due to the fact that the transaction is still subject to confirmation by the TSX Venture Exchange of the suitability of the acquirer of the insider units.
For further details, read the Company's full news release here.
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