Xanthic Biopharma Inc. Announces Private Placement
Toronto, Ontario – Xanthic Biopharma Inc. (formerly Aurquest Resources Inc.) (“Xanthic”) is pleased to announce it has arranged a non-brokered private placement (the “Private Placement”) of up to 3,000,000 units (the “Units”) at a price of $0.50 per Unit to raise gross proceeds of up to $1,500,000. Each Unit will be comprised of one common share in the capital of Xanthic (a “Common Share”) and one-half of one (1/2) common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $0.75 per Common Share for a period of 24 months from the closing date of the Private Placement, which is expected to occur on March 31, 2018.
In connection with the Private Placement, EMD Financial Inc. (“EMD”) will receive a finder’s fee equal to 8% of the total gross proceeds raised in the Private Placement from purchasers of Units introduced to Xanthic by EMD. In addition, EMD will receive compensation options (“Compensation Options”) equal to 4% of the Units sold under the Private Placement to purchasers introduced to Xanthic by EMD, each Compensation Option entitling the holder thereof to acquire one Unit of Xanthic at a price of $0.50 per Unit for a period of 24 months following the closing of the Private Placement. EMD will also receive a corporate finance fee equal to $15,000.
The securities issued pursuant to the Private Placement will be subject to a four month and one day statutory hold period from the date of issuance in accordance with applicable securities legislation.
Xanthic intends to use the net proceeds from the Private Placement for general working capital purposes.