(TSXV: CVM) April 20, 2017 – CVR Medical Corp. has closed the first tranche of its previously announced non-brokered private placement financing.
An aggregate of 7,521,768 units at a price of $0.48 per unit were issued in the first tranche for gross proceeds of $3.6 million. The company currently expects to close a second and final tranche of the financing for gross proceeds of approximately $600,000 on or about April 21, 2017.
Net proceeds will be used for working capital in respect of the company’s joint venture with CVR Global Inc.
Each unit consists of one common share of the company and one-half of one transferable common-share purchase warrant. Each warrant is exercisable at a price of $0.70 until October 19, 2018.
In the first tranche closing, the company paid finders fees of 6 percent cash and 6 percent compensation warrants comprised of an aggregate cash commission of $180,638 and a total of 376,328 compensation warrants. The compensation warrants have substantially the same terms as the warrants, but are not transferable.
The shares, warrants and compensation warrants are subject to a hold period expiring August 20, 2017. The financing remains subject to final acceptance of the TSX Venture Exchange.
The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
CVR Medical is involved in an equal-parts joint venture with CVR Global Inc. The joint venture operates in the medical industry focused on the commercialization of a proprietary subsonic, infrasonic, and low-frequency soundwave analysis technology and has patents to a diagnostic device designed to detect and measure carotid arterial stenosis.