ACGT DNA Technologies completes $975K debenture financing

News Release

ACGT DNA Technologies Corporation Announces Closing of C$975,000 Secured Convertible Debenture Private Placement

Vancouver, B.C., July 7, 2017 – ACGT DNA Technologies Corporation (“ACGT” or the “Company”) announces that it has closed a C$975,000 private placement of secured convertible debentures (the “Debentures”). The Debentures will mature two (2) years from the date of issue (the “Maturity Date”), will bear interest at a rate of 10% per annum payable on the Maturity Date or where the whole or any part of the Debenture is converted on the date of conversion in proportion to amount of the Debenture converted on such date, and will be secured obligations of the Company. The private placement was non-brokered and no commission was paid. The proceeds from the Offering will be used for general working capital purposes.

The principal amount of the Debentures together with any accrued and unpaid interest shall be convertible at any time at the option of the holder into common shares of the Company (the “Common Shares”) at a price of C$0.50 per Common Share.

The Company provided a covenant in the Debenture that it will not issue any security that ranks senior to or pari-passu with the Debentures without the approval of Debenture holders. The Company has entered into a general security agreement (the “GSA”) in first ranking on the Company’s assets in Canada and the United States, which secures the obligations of the Company to the Subscriber under the Debenture. The Company’s material subsidiaries have delivered guarantees of the Company’s obligations under the GSA and have registered first ranking security against the assets of the material subsidiaries in accordance with the terms and conditions of the security agreements.

The Company has entered into a subordination agreement executed by an existing secured creditor pursuant to a secured promissory note up to a maximum of C$300,000, which may rank senior to the Debentures.

All securities issued pursuant to the Offering are subject to resale restrictions for a period of four months and a day until October 30, 2017, as prescribed by applicable securities laws.

About ACGT

ACGT, a molecular diagnostics company, provides DNA/RNA sequencing and manufactures custom synthetic oligonucleotides for research and testing purposes.


For further information, contact:
Glen Macdonald, Director 604-719-8129.
ACGT DNA Technologies Corporation 595 Howe Street, Suite 701 Vancouver, B.C., V6C 2T5