Khiron Raises $25 Million in $2.90 Common Share Offering

By May 12, 2019 No Comments

Khiron-life-sciences-corp-logoKhiron Life Sciences Corp. (TSXV: KHRN), (OTCQB: KHRNF), (Frankfurt: A2JMZC) announced that it has entered into an agreement with Canaccord Genuity Corp. and BMO Capital Markets as co-lead underwriters and joint bookrunners, that saw Khiron Life Sciences Corp. selling 8,621,000 of its common shares at $2.90 per common share $25,000,000 in gross proceeds.

Khiron has also offered Canaccord Genuity Corp and BMO Capital Markets an over-allotment option which gives them the option to purchase an additional 15 percent of the Common Shares at $2.90 at any time on or prior to the date that is 30 days following the closing of the offering. If this option is exercised in full, Khiron is expected to raise an additional $3,750,135 bringing the total gross proceeds to $28,751,035.

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Net proceeds will be used to expand Khiron’s operating capacity and for working capital requirements, and other general corporate purposes. The closing date of this Offering is set to be on or about May 28, 2019. This agreement is still subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (“TSXV”) and the applicable securities regulatory authorities.

In an earlier announcement, Khiron released its 2018 Fiscal Year End Results and Corporate Updates:

  • Secured approximately $40 million of investment capital for cultivation site construction, product development, and distribution
  • Became the first Colombian cannabis company to list on the TSX Venture Exchange
  • Geographic footprint to countries including Colombia, Mexico, Chile, Peru, Uruguay, and Italy
  • Received first INVIMA approvals for seven CBD-based cosmeceutical products in Colombia.
  • Generated first revenue in Q4 2018 with the commercialization of the Kuida® brand of cosmeceutical products
  • Increased potential cultivation capacity to 220 tonnes per annum through organic growth and pending acquisitions
  • Made key management and board appointments including Mr. Vicente Fox as Director of the Board, the former CEO of Coca Cola Mexico and former President of Mexico
  • Networking capital position of $17,493,835
  • Raised $28,842,000 in bought deal financing including full exercise of the over-allotment option, subsequent to the quarter

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