Vancouver, British Columbia--(Newsfile Corp. - July 17, 2020) - Genix Pharmaceuticals Corporation (TSXV: GENX) (the "Company"), is pleased to announce it has closed an initial tranche of $640,984 under the non-brokered private placement (the "Private Placement") announced by news release dated June 22, 2020. The Private Placement was originally announced for total gross proceeds of up to $562,500, subject to a 15% over-allotment option. Due to strong demand, Genix filed a price reservation form to increase the size of the Private Placement to total gross proceeds of $1,100,00.
The initial tranche closing comprises 4,273,227 units of the Company (each a "Unit") at a price of $0.15 per Unit. Each Unit consists of one common share of the Company (a "Share") and one-half of one transferrable Share purchase warrant (each whole warrant a "Warrant"). Each Warrant will entitle the holder thereof to acquire one additional Share at a price of $0.30 for term of 2 years following closing, being July 17, 2022 (the "Expiry Date"), subject to acceleration.
If the closing price of the Shares on the TSX Venture Exchange (the "Exchange") is greater than $0.50 for 10 consecutive trading days, then the Company may, at is sole option, elect to provide notice (the "Acceleration Notice") to the holders of the Warrants, which Acceleration Notice may be provided by news release, that the Warrants will expire at 4:00 p.m. (Vancouver time) on the date that is 30 days from the date of the Acceleration Notice (the "Accelerated Expiry Date"). In such instance, all Warrants that are not exercised prior to the Accelerated Expiry Date will expire on the Accelerated Expiry Date.
The Company expects that it will complete a second tranche balance of the increased Private Placement within the next two weeks.
Proceeds from the Private Placement will be used for be used for acquisition payments pursuant to an agreement dated January 10, 2020 to purchase rights to two nutraceutical drugs named Sucanon® and Renochlor® (see news releases dated January 14 and March 3 for further information), to acquire rights to Flu-X® pursuant to agreement dated March 24, 2020 (see news release dated March 27 for further information), and for general working capital purposes.
In connection with initial tranche closing the Company paid cash commissions of $5,355 and issued 35,700 finder's warrants pursuant to and in accordance with applicable securities laws and Exchange policy. The finder's warrants have the same terms as the Warrants.
All securities issued in conjunction with the initial tranche closing have a hold period expiring 4 months and one day following closing.
Genix also reports that Dr. Conny Lin has tendered her resignation as a director of the Company. Genix wishes to thank Dr. Lin for her efforts of our behalf.
About the Company
Genix Pharmaceuticals Corporation is an innovative Canadian life sciences company focused on the research, development, manufacture and sales of novel and innovative healthcare products - proprietary over the counter ("OTC") nutraceuticals and generic pharmaceuticals that have been shown to deliver consistent and verifiable results in various therapeutic areas. The Company employs a pharmaceutical model for product development and selection including rigorous active ingredient discovery and clinical testing for all its nutraceutical and pharmaceutical products. Since its inception, the Company has been involved in the manufacturing and marketing of both nutraceutical and pharmaceutical products. The Company intends to continue developing novel and innovative products for sale through traditional retail outlets as well as direct to consumers and e-commerce platforms, in keeping with the evolving nature of the health care industry towards Integrative Medicine and Health ("IMH") and Complementary and Alternative Medicine ("CAM"). Genix intends to market its products in Canada, the USA, China, S.E. Asia, the United Kingdom and other selected countries.
On behalf of the Board,
Sina Pirooz, CEO, Director
Genix Pharmaceuticals Corporation
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements regarding the Private Placement, closing of the Private Placement and use of proceeds of the Private Placement. These forward-looking statements are provided as of the date of this news release and reflect predictions, expectations or beliefs regarding future events based on the Company's current beliefs, as well as various assumptions made by and information currently available to them. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to, the assumption that regulatory approval of the Private Placement will be obtained in a timely manner; that all conditions precedent to the completion of the Private Placement will be satisfied in a timely manner; that general economic and business conditions will not change in a materially adverse manner; and that the Company will be able to raise additional funds on reasonable terms. Although management considers these assumptions to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but specifically include, without limitation, risks relating to: general market conditions; the Company's ability to secure financing on favourable terms. The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
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