GUILFORD, Conn.--(BUSINESS WIRE)--BIOASIS TECHNOLOGIES INC. (OTCQB:BIOAF; TSX.V:BTI), a pre-clinical, research-stage biopharmaceutical company developing its proprietary xB3™ platform technology for the delivery of therapeutics across the blood-brain barrier and the treatment of central nervous system disorders in areas of high unmet medical need, including brain cancers and neurodegenerative diseases, today announced that it has completed its previously announced bridge financing transaction (the “Bridge Financing”) for aggregate gross proceeds of approximately USD$530,000.
Pursuant to the Bridge Financing, Bioasis issued a total of approximately CAD$696,000 unsecured debentures (the “Debentures”) to a group of arm’s length investors. The Debentures have a term of one year and bear interest at a rate of 7.5% per annum, payable semi-annually in arrears. The principal amount of the Debentures, and any accrued and unpaid interest thereon, shall be repayable in full in the event that the Company raises an aggregate of USD$500,000 (excluding any proceeds raised from the Bridge Financing) through financing, licensing or other business development activities (each an “Additional Financing Event”), within 14 days following the closing of any such Additional Financing Event.
Each investor in the Bridge Financing also received warrants to purchase common shares of Bioasis (the “Bonus Warrants”) on the basis of 5,000 Bonus Warrants for every CAD$1,000 principal amount of Debentures purchased, resulting in the issuance of a total of 3,480,759 Bonus Warrants. Each Bonus Warrant entitles the holder thereof to purchase one common share of Bioasis at a price of CAD$0.20 per share for a period of one year.
Bioasis intends to use the proceeds of the Bridge Financing for working capital purposes and to fund ongoing operations as it continues to pursue additional financing alternatives, including multiple potential technology licensing transactions which may yield near term cash inflows from upfront payments.
The Company paid finder fees relating to the Bridge Financing to Industrial Alliance Securities Inc. of CAD$55,000 in cash and warrants to purchase 870,000 common shares of Bioasis on terms consistent with the Bonus Warrants (except for the term of the warrants, which is five years rather than one year).
All the securities issued pursuant to the Bridge Financing are subject to a hold period in Canada, expiring four months and a day after the closing date.
About Bioasis
Bioasis Technologies Inc. is a biopharmaceutical company developing the xB3™ platform, a proprietary technology for the delivery of therapeutics across the blood brain barrier and the treatment of CNS disorders in areas of high unmet medical need, including brain cancers and neurodegenerative diseases. The delivery of therapeutics across the blood brain barrier represents the final frontier in treating neurological disorders. The in-house development programs at Bioasis are designed to develop symptomatic and disease-modifying treatments for brain-related diseases and disorders. The company maintains headquarters in Guilford, Conn., United States. Bioasis trades on the TSX Venture Exchange under the symbol “BTI” and on the OTCQB under the symbol “BIOAF.” For more information about the company, please visit www.bioasis.us.
