On May 15, 2020 IMMUNOPRECISE ANTIBODIES LTD. (the "Company" or "IPA") (TSX VENTURE: IPA) (OTC QB: IPATF) reported that it has closed its previously announced non-brokered private placement financing by issuing a total of CAD$2,592,000 10% convertible debentures (Press release, ImmunoPrecise Antibodies, MAY 15, 2020, View Source [SID1234558275]).
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The debentures are unsecured, bear interest at a rate of ten percent (10%) per year, payable annually, and are due May 15, 2022 (which may be repaid early at the option of the Company). The principal amount of the debentures may be convertible, at the option of the holder, into units of the Company at a conversion price of CAD $0.85 per share.
The Company may force convert the principal amount of the debentures at CAD$0.85 per share if the average closing price is equal to or greater than CAD$1.50 for 20 trading days. In order to exercise this right, the Company must issue a news release announcing its intention to exercise this right within 10 business days after the end of the particular 20-day period.
Jennifer Bath, CEO of the Company, subscribed for $175,000 of debentures and Paul Andreola, a director of the Company, subscribed, directly and indirectly, for a total of $229,000 debentures. Participation by these insiders in the private placement is considered a related party transaction pursuant to Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions. The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the insider’s participation in the private placement in reliance of sections 5.5(a) and 5.7(a) of MI 61-101.
The securities are subject to restrictions on resale expiring on September 16, 2020. The Company paid finders cash commissions totalling $43,000.
Proceeds of the offering will be used to expand operations and sales in the United States, Canada and Europe and working capital purposes.
Resignation of Chief Technical Officer
Chip Wheelock has announced he is resigning as Chief Technical Officer effective immediately. The Board of Directors would like to thank Mr. Wheelock for all of his efforts.
On behalf of the Company.