Microbix Biosystems Inc. announces that it has completed a second and final tranche of the brokered private placement financing announced on October 19, 2017.
TORONTO, October 27, 2017 - Microbix Biosystems Inc. (TSX: MBX) ("Microbix" or the "Company"), a developer and marketer of biological products and technologies, announces that it has completed a second and final tranche of the brokered private placement financing announced on October 19, 2017. An aggregate of 7,784,500 Units were issued in the first tranche for gross proceeds of $2.33 million. Microbix has now closed a second tranche of private placement financing for further gross proceeds of $1.17 million,resulting in the issue of 3,882,133more Units at a price of $0.30 per Unit.
Each Unit consists of one common share ("Common Share") of Microbix and one-half of one warrant to purchase one Common Share. Each whole warrant ("Warrant") entitles the holder to purchase one additional Common Share at a price of $0.36 for three years.
The proceeds of the private placement will be used to fund upgrades to production facilities such as additional bioreactor equipment, support the commercialization of quality assurance or proficiency control products and provide further working capital.
Cameron Groome, President and CEO of Microbix, commented "These proceeds will support our initiatives to build sales, enhance earnings and increase shareholder value."
Dominick Capital Corporation ("Dominick") acted as lead agent in connection with the private placement. Dominick and its selling group members received cash commission of $73,054.80 and an aggregate of 243,516agent warrants (the "Agent Warrants") in connection with second tranche of the private placement. Each Agent Warrant entitles the holder to purchase one Common Share at a price of $0.335 per Common Share for two years.
All securities issued under the private placement will be subject to a hold period expiring four months and one day from the date of closing. The private placement was carried out pursuant to prospectus exemptions and is subject to final acceptance by the TSX.
A Company insider ("Insider") subscribed for an aggregate of 333,334 Units of this second tranche, for gross proceeds of $100,000. The participation of Insiders in the private placement constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and the policies of the TSX. The Company is relying on the exemptions from the formal valuation and minority approval requirements contained in sections 5.5(a)and 5.7(1)(a) of MI 61-101 on the basis that participation in the private placement by Insider will not exceed 25% of the fair market value of the Company's market capitalization. The Company did not file a material change report at least 21 days prior to the completion of the private placement since the existence of any placement or Insider's participation therein was not determined at that time.
About Microbix
Microbix Biosystems Inc. specializes in the development of proprietary biological and technology solutions for human health and well-being. The Company manufactures a wide range of critical biological materials for the global diagnostics industry. The Company also applies its biological expertise and technology platforms to create other innovative products and technologies. Currently it is commercializing two such proprietary products, (1) Kinlytic® urokinase, a biologic thrombolytic drug used to treat blood clots, and (2) LumiSort™, a technology platform for ultra-rapid and efficient sorting of somatic cells that can be used to enrich cell populations of interest, such as in sexing semen. Established in 1988, Microbix is a publicly traded company, listed on the Toronto Stock Exchange and headquartered in Mississauga, Ontario, Canada.
