Microbix Completes Non-Brokered Private Placement of $2.3 million
MISSISSAUGA, Ontario, Jan. 31, 2020 (GLOBE NEWSWIRE) — Microbix Biosystems Inc. (TSX: MBX, Microbix®), a life sciences innovator making critical ingredients that enable the production of clinical diagnostics and creating medical devices that help ensure test accuracy, announces that it has completed a non-brokered private placement financing with gross proceeds of $2,355,000, by issuing an aggregate of 11,775,000 units (“Units”) at a price of $0.20 per Unit.
Each Unit consists of one common share (“Common Share”) of Microbix and one warrant (“Warrant”) to purchase one Common Share. Each Warrant entitles the holder to purchase one additional Common Share at a price of $0.36 for five 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.The proceeds of the private placement will be broadly used to support Microbix’s ongoing growth in total revenues, which have increased by 28% since its last equity funding in 2017. More specifically, the funds are intended to enable Microbix to accelerate the development, registration, and launch of new quality assessment products (QAPs™) and improve the overall working capital position of the Company.Cameron Groome, President and CEO of Microbix, commented, “These additional funds will be used to accelerate Microbix’s transformation into a developer and marketer of innovative, proprietary, and branded medical devices that are important to health outcomes around the world. We deeply appreciate the support from our many stakeholders, internal and external, as we advance our stated goals.”The private placement was supported by a number of institutional investors, retail investment advisors, and individuals. Pursuant to such participations, Microbix has paid cash commissions of approximately $104,000 and an aggregate of 519,750 compensation warrants (the “Compensation Warrants”). Each Compensation Warrant entitles the holder to purchase one Common Share at a price of $0.36 per Common Share for five years.Eleven Directors and Officers of the Company (collectively, the “Insiders”) invested in Microbix via this private placement, subscribing for an aggregate of 3,300,000 Units, for gross proceeds of $660,000.00. The participation of Insiders in the private placement constitutes a “related party transaction” within the meaning of the 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 insiders 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 Insiders’ participation therein was not determined at that time.Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.About Microbix Biosystems
Microbix develops proprietary biological and technology solutions for human health and well-being, with sales exceeding $1 million per month on average and approximately 80 skilled employees. It makes a wide range of critical biological materials for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs™) that support clinical lab proficiency testing, enable assay development and validation, or help ensure quality control of clinical diagnostic tests. Microbix antigens and QAPs are sold to many customers worldwide, at present primarily to multinational diagnostics companies and laboratory accreditation organizations.