Willow Biosciences Announces Exercise of Over-Allotment Option and Completion of Previously Announced Public Offering
Willow Biosciences Announces Exercise of Over-Allotment Option and Completion of Previously Announced Public Offering |
[29-October-2020] |
VANCOUVER, BC, Oct. 29, 2020 /CNW/ - Willow Biosciences Inc. ("Willow" or the "Company") (TSX: WLLW) (OTCQX: CANSF) is pleased to announce that it has closed its previously announced upsized public offering of 17,692,307 units ("Units") of the Company at a price of $0.65 per Unit, which includes 2,307,692 Units issued pursuant to the exercise in full of the over-allotment option, for aggregate gross proceeds of approximately $11.5 million (the "Offering"). Each Unit consists of one common share in the capital of Willow (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.85 for a period of 24 months from the date hereof; provided that if, at any time prior to the expiry date of the Warrants, the volume weighted average trading price of the Common Shares on the Toronto Stock Exchange (the "TSX"), or other principal exchange on which the Common Shares are listed, is greater than $1.20 for 20 consecutive trading days, the Company may, within 10 business days of the occurrence of such event, deliver a notice to the holders of Warrants (the "Acceleration Right") accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice (the "Accelerated Exercise Period"). Any unexercised Warrants will automatically expire at the end of the Accelerated Exercise Period. Net proceeds from the Offering are expected to be used for the commercialization of cannabigerol (CBG) and other portfolio cannabinoids of the Company, general and administrative expenses, working capital and general corporate purposes. It is anticipated that the Warrants will be listed and posted for trading on the TSX under the symbol "WLLW.WR" at market open today. The Offering was made pursuant to an agency agreement dated October 23, 2020 (the "Agency Agreement") between the Company and a syndicate of agents led by ATB Capital Markets Inc., and including Canaccord Genuity Corp. and Eight Capital (collectively, the "Agents"). Pursuant to the Agency Agreement, the Company paid the Agents a cash commission equal to 3.0% of the gross proceeds of the Offering received from investors included by the Company on a president's list, and 6.0% of the remaining gross proceeds of the Offering. The Company also issued the Agents 474,324 common share purchase warrants (each, a "Compensation Warrant"), with each Compensation Warrant entitling the Agents to purchase one Common Share at a price of $0.85 for a period of 12 months from the date hereof, subject to the Acceleration Right. The Units were offered in each of the provinces of Canada, other than Québec, pursuant to a prospectus supplement dated October 23, 2020 to the Company's short form base shelf prospectus dated October 13, 2020 (together, the "Supplemented Prospectus"), and were also offered by way of private placement in the United States to "accredited investors" and "qualified institutional buyers". The terms of the Offering are further described in the Supplemented Prospectus, which is available under the Company's SEDAR profile at www.sedar.com. About Willow Biosciences Inc. Willow is a Canadian biotechnology company based in Vancouver, British Columbia that produces high purity, plant-derived compounds that provide building blocks for the global pharmaceutical, health and wellness, and consumer packaged goods industries. Willow's current focus is in the production of cannabinoids for the treatment for pain, anxiety, obesity, brain disorders, among other significant indications. Willow's science team has a proven track record of developing manufacturing technologies for high purity compounds in pain and cancer treatments. Willow's manufacturing process creates a consistent, scalable and sustainable product that allows for the discovery and development of new life changing drugs. Forward-Looking Statements The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement. SOURCE Willow Biosciences Inc. | ||
Company Codes: OTC-PINK:CANSF, Toronto:WLLW |
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