Innocan Pharma's Significant Debenture Offering
Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTC: INNPF) is excited to announce that it has successfully closed a significant non-brokered private placement debenture offering with Tamar Innovest Ltd. The company has garnered considerable gross proceeds amounting to US $1,000,000. This initial investment marks a strong partnership with Tamar Innovest, which has been instrumental since the inception of Innocan.
Details of the Debenture Unit
The Debenture Unit comprises a secured convertible debenture valued at US $1,000,000, alongside a set of 5,555,555 common share purchase warrants. The maturity of the debenture is set at two years from the issuance date, with an annual interest rate of 10%. This interest rate establishes a beneficial return for the investor while offering an attractive opportunity for Innocan.
Convertible Debenture Features
This secured debenture can be converted into common shares of Innocan prior to the maturity date at a conversion price of $0.21 per share. The security agreement backing the debenture ensures a strong foundation for this investment, including a pledge of Innocan’s shares of its Israeli subsidiary. This notable arrangement underscores the investment's robustness.
Use of Proceeds
Innocan plans to utilize the proceeds from this debenture offering primarily for working capital and general corporate purposes. This strategic use of funds will bolster Innocan’s ongoing projects and operations, aiming for further innovation and expansion in the pharmaceutical field.
CEO's Perspective on the Investment
The CEO of Innocan, Iris Bincovich, expressed enthusiasm regarding the collaboration with Tamar Innovest. In a statement, Bincovich emphasized the importance of Tamar's continued trust and commitment to the company’s vision and plans for growth. This partnership is pivotal for leveraging Innocan’s pharmaceuticals and wellness sectors, especially in an industry driven by innovation.
Understanding Related Party Transactions
Tamar Innovest’s involvement in this offering qualifies as a related party transaction because of its substantial ownership stake, holding 49,726,309 common shares that represent 17.14% of the current issued shares. The decision was made in accordance with Multilateral Instrument 61-101 for protecting minority security holders. Therefore, the directors have approved this transaction, ensuring transparency and fairness to all stakeholders.
Upcoming Outlook and Ownership Details
Post-offering, Tamar Innovest will maintain its control over 49,726,309 common shares and will also hold one debenture and the common share warrants. These securities come with a restriction that prevents ownership from exceeding 19.99% of the total outstanding shares, ensuring regulatory compliance.
Future Investment Opportunities
As a strategic investor, Tamar Innovest is likely to monitor its market position and may opt to adjust its ownership stake in Innocan through future investments. With the funds raised from this offering, Innocan is well-positioned to pivot towards critical projects that could yield significant growth and enhance the overall market standing.
About Innocan Pharma
Innocan Pharma stands at the forefront of the pharmaceutical and wellness industries. The company has pioneered a proprietary drug delivery platform using CBD within liposome formulations that provide controlled and sustained release for pain management solutions. Additionally, Innocan markets a diverse range of high-performance wellness products aimed at fostering healthier lifestyles through its dedicated online sales efforts.
Frequently Asked Questions
What is the amount raised in the debenture offering?
Innocan Pharma raised US $1,000,000 through the debenture offering to Tamar Innovest.
Who is Tamar Innovest?
Tamar Innovest is Innocan’s primary investor, holding a significant stake in the company and facilitating this funding round.
What will the funds be used for?
The raised funds will be used primarily for working capital and general corporate purposes to support Innocan’s ongoing projects.
What are the terms of the debenture?
The debenture matures in two years, features a 10% interest rate, and can be converted into shares at $0.21 each prior to maturity.
What does this mean for Innocan’s future?
This investment positions Innocan for growth and innovation in the competitive pharmaceuticals and wellness markets.
