TORONTO, ONTARIO--(Marketwired - Oct. 4, 2016) -
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Ventripoint Diagnostics Ltd. ("Ventripoint" or the "Corporation") (TSX VENTURE:VPT) announces that it has closed the first tranche of its non-brokered private placement announced on September 23, 2016 (the "Private Placement").
The first tranche involved the issuance of 2,000,001 units ("Units") at a price of $0.15 per Unit, for gross proceeds of $300,000. Each Unit consisted of one common share of Ventripoint ("Common Share") and one Common Share warrant ("Warrant"). Each Warrant will entitle the holder thereof to acquire one additional Common Share at an exercise price of $0.30 per Common Share for a period of 2 years after the issuance of the Warrant, subject to acceleration in certain events.
Two of the subscribers in the first tranche accepted Units as payment in full of outstanding debentures previously issued by the Corporation, as a shares-for-debt transaction (the "Shares for Debt"). As a result of the Shares for Debt, the Corporation's net debt has been reduced by $38,000.
The Common Shares and the Warrants acquired by the subscribers are subject to a hold period of four months plus one day from the date of closing of the Private Placement except as permitted by applicable securities legislation and the rules of the TSX Venture Exchange ("TSXV"). The Private Placement is subject to the final acceptance of the TSXV.
The Corporation will use the proceeds of the Private Placement for product development, sales and marketing and general working capital purposes.
The total size of the Private Placement is up to 4,000,000 Units. The Corporation expects to close the second tranche of the Private Placement in the near future.
Forward Looking Statement:
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, this news release contains forward-looking information relating to final acceptance of Private Placement by the TSXV and the use of the proceeds therefrom. The forward-looking statements and information are based on certain key expectations and assumptions made by the Corporation, including expectations and assumptions concerning the TSXV approval of the Private Placement and the use of net proceeds of the Private Placement. Although the Corporation believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Corporation can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain factors, which could materially affect such forward-looking information are described in the risk factors in the Corporation's most recent annual management's discussion and analysis that is available on the Corporation's profile on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements included in this news release are expressly qualified by this cautionary statement. The forward-looking statements and information contained in this news release are made as of the date hereof and the Corporation undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.