VANCOUVER, BC. August 9, 2018 - Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) (“Aequus” or the “Company”), a specialty pharmaceutical company with a focus on developing, advancing and promoting differentiated products, is pleased to announce that it intends to complete a non-brokered private placement (the “Placement”) of 3,875,000 units of the Company (the “Units”) at a price of $0.20 per Unit (the “Offering Price”), for aggregate gross proceeds of $775,000 (the “Private Placement”). Each Unit shall consist of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one common share at an exercise price of $0.30 for a period of four years following the Closing Date. The Warrants will include an acceleration provision, exercisable at the Company’s option, if the Company's daily volume weighted average share price is greater than $0.45 for 10 consecutive trading days.
Aequus has received subscription agreements for all 3,875,000 units and closed an initial 1,500,000 Units of the Placement for aggregate gross proceeds of $300,000. All of the common shares and the Warrants are subject to a hold period until December 9, 2018. Aequus expects the balance of the Placement to close this week, subject to a number of conditions, including the execution of definitive documentation and receipt of final approval of the TSX Venture Exchange for the listing of the common shares issuable on closing and issuable upon the exercise of the Warrants and Finders’ Warrants.
The Company will pay a fee to certain finders (the “Finders”) in connection with the Units issued to investors introduced to the Company by the Finders, such fee to consist of (i) a cash payment (the “Cash Payment”) equal to 7.0% of the gross proceeds received from the investors introduced to the Company by the Finders and (ii) Common Share purchase warrants equal to 7.0% of the number of Units sold to investors introduced to the Company by the Finders (the “Finders’ Warrants”, and together with the Cash Payment, the “Finders’ Fee”), each Finders’ Warrant entitling the holder thereof to acquire one Common Share (a “Finders’ Warrant Share”) at a price of $0.30 per Finders’ Warrant Share for a period of two years from the date that the Private Placement closes.
Aequus intends to use the net proceeds of the Placement for general corporate and working capital purposes, including commercial and marketing activities, advancing internal programs and supporting on-going business development. Securities issued under the Private Placement will be subject to a four month hold period in Canada following the date of closing and will be "restricted securities" as defined in U.S. federal securities laws.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Aequus Pharmaceuticals
Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) is a growing specialty pharmaceutical company focused on developing and commercializing high quality, differentiated products. Aequus has grown its pipeline to include several commercial products in ophthalmology and transplant, and a development stage pipeline in neurology and psychiatry with a goal of addressing the need for improved medication adherence through enhanced delivery systems. As a complement to its focus in neurology, our most recent addition to the development pipeline was a long-acting form of medical cannabis, where there is a high need for a consistent, predictable and pharmaceutical-grade delivery of products for patients. Aequus intends to commercialize its internal programs in Canada alongside its current portfolio of marketed established medicines and will look to form strategic partnerships that would maximize the reach of its product candidates worldwide. Aequus plans to build on its Canadian commercial platform through the launch of additional products that are either created internally or brought in through an acquisition or license; remaining focused on highly specialized therapeutic areas. For further information, please visit www.aequuspharma.ca.