LONDON, ONTARIO--(Marketwired - Jun 24, 2013) - Critical Outcome Technologies Inc. (TSX VENTURE:COT) ("COTI" or the "Corporation") announced today that it has completed the second tranche of a non-brokered private placement and issued 2,003,498 units (the "Units") at a price of $0.12 per Unit for gross proceeds of approximately $240,420. Total gross proceeds of the two tranches were approximately $529,907.
"These additional funds improve our ability to execute our commercial validation and revenue strategy," said John Drake, Chairman of the Board. "This strategy has two prongs comprised first, of fee for service collaborations and second, the out-licensing of our own compounds. We are advancing toward several key, value-building milestones, including the completion of testing and development work under our three drug discovery collaboration agreements and finding the optimal partner to develop our lead cancer drug candidate, COTI-2."
Each Unit consists of one common share and one warrant of the Corporation. Each warrant is exercisable for one common share of the Corporation at an exercise price of $0.26 per share for a period of 18 months from the date of issue. The Corporation paid finders' fees to arm's length third parties in connection with this second tranche in the aggregate amount of $7,826 in cash and issued an aggregate of 65,213 compensation warrants. Each compensation warrant is exercisable into one common share of the Corporation for a period of 18 months from the date of issue at an exercise price of $0.20 per share.
The common shares and warrants comprising the Units, as well as the common shares issuable upon the exercise of the warrants and the compensation warrants, are subject to restrictions on resale, which expire on October 22, 2013 in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The offering is subject to final acceptance by the TSX Venture Exchange.
About Critical Outcome Technologies Inc. (COTI)
COTI is a leading-edge technology company specializing in accelerating the discovery and development of small molecules - dramatically reducing the time and cost to bring new drugs to market. COTI'S proprietary artificial intelligence system, CHEMSAS®, utilizes a series of predictive computer models to identify compounds with a high probability of being successfully developed from disease specific drug discovery through chemical optimization and preclinical testing. These compounds are targeted for a variety of diseases, particularly those for which current treatments are either lacking or ineffective.
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