BEVERLY, Mass., March 29, 2019 (GLOBE NEWSWIRE) -- LexaGene Holdings Inc. (OTCQB: LXXGF; TSX-V: LXG) (the “Company”), a biotechnology company that develops genetic analyzers for pathogen detection and other molecular markers, is pleased to announce it has closed an oversubscribed non-brokered private placement financing (the “Private Placement”) for total gross proceeds of $2,843,926 CAD.
The Company has issued 4,375,271 units (the “Units”) at a price of $0.65 CAD per Unit. Each Unit is comprised of one common share and one warrant, with each whole warrant entitling the holder to purchase one common share of the Company for a period of up to fifteen months at a price of $0.85 CAD. The warrants are subject to an accelerated expiry in circumstances where, at any time commencing two (2) months from the date the warrants are issued, if for the preceding five (5) consecutive trading days, the daily volume weighted average trading price of the Company’s common shares is greater than $1.10 CAD, in which case the Company may accelerate the expiry date of the warrants by giving notice to the holders thereof and in such case the warrants will expire on the 30th calendar day after the date of such notice.
In addition, the Company has paid finders’ fees totaling $168,620 CAD and issued an aggregate 259,455 non-transferable finders’ warrants (the “Finders’ Warrants”). Each Finder’s Warrant is exercisable into one common share for a period of up to fifteen months at a price of $0.85 CAD. The Company intends to use the majority of the proceeds from the Private Placement towards beta development of the Company’s LX Analyzer and related corporate activities involved in marketing its technology to the food safety and veterinary diagnostics industries. The Private Placement is subject to TSX Venture Exchange approval and all securities issued will be subject to a statutory 4-month hold period from closing in accordance with applicable securities legislation, expiring July 30, 2019.
In addition, on March 28th, the board of directors and compensation committee approved inducement grants in accordance with the Company’s Omnibus Incentive Plan for insiders totaling 530,000 restricted share units (“RSUs”) and 650,000 Options. Each Option is exercisable into one common share of the Company ("Share") at a price of $0.65 CAD per Share, for a period of three years and six months from the date of grant. The RSUs and options will vest 10% on the date of the grant and then 15% every six months thereafter.
ON BEHALF OF THE BOARD
Dr. Jack Regan: Founder, Chief Executive Officer, Chairman of the Board, and Director
Daryl Rebeck: President and Director
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About LexaGene Holdings Inc.
LexaGene is a biotechnology company commercializing the very first easy-to-use, fully automated, genetic analyzer that is open-access. The open-access feature empowers end-users to target any genetic sequence of interest, whether of pathogen or human origin. To take advantage of the open-access feature, end-users simply need to load their own real-time PCR assays onto the instrument to customize their tests or run validated assays the company is developing. LexaGene’s analyzers offer excellent sensitivity, specificity, and breadth of pathogen detection while returning results in about 1 hour. The company expects to sell its technology in the food safety and veterinary diagnostics markets, as well as to markets that need easy-to-use customized testing such as biotechnology and pharmaceutical companies, academia, and institutions performing water quality monitoring, aquaculture pathogen surveillance, and others.
Director of Corporate Marketing, LexaGene
800.215.1824 ext 206
Vice President of Capital Markets, LexaGene
800.215.1824 ext 207
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. 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.
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors -- including the availability of funds, the results of financing efforts, the success of technology development efforts, the cost to procure critical parts, performance of the instrument, market acceptance of the technology, regulatory acceptance, and licensing issues -- that could cause actual results to differ materially from the Company's expectations as disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.