Friday, February 10, 2023
Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Raising up to $6.1 million gross proceeds. Yesterday, ChitogenX announced a two-part equity placement. The first is a best efforts private placement for up to $4.35 million (currencies in Canadian $) gross proceeds, subject to a $3 million minimum, under a financing prospectus exemption in Part 5A of the Canadian National Instrument 45-106 – Prospectus Exemptions. Second is a non-brokered private placement of up to $1.75 million gross proceeds. The closing of the first offering is conditional upon the closing of the second private placement. The offerings are expected to close on or around February 28, 2023.
Offering terms. Each of the two offerings carry the same terms priced at $0.225 per unit. Each unit consists of one Class A share of common and one purchase warrant exercisable at $0.35 with a 5 year expiration. If the volume weighted daily average trading price exceeds $0.50 for 10 consecutive trading days, ChitogenX can accelerate the expiration date. ChitogenX expects to use the net proceeds to complete enrollment of the Rotator Cuff U.S. Phase I/II clinical trial program, and for working capital and general corporate purposes.
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