On April 21, 2022 Helix BioPharma Corp. (TSX: "HBP") ("Helix" or the "Company"), a clinical-stage biopharmaceutical company developing unique therapies in the field of immuno-oncology, based on its proprietary technological platform DOS47, reported that it has closed a private placement financing for net proceeds of $2,002,000 from the issuance of 7,700,000 common shares at a price of $0.26 per common share (Press release, Helix BioPharma, APR 21, 2022, View Source [SID1234613227]).
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Mr. Jerzy Wilczewski ("Mr. Wilczewski"), an insider of the Company, subscribed for 7,700,000 common shares issued under the private placement. As a result of the closing of the private placement, Mr. Wilczewski owns or exercises controlordirectionover31,167,153 commonshares, representingapproximately19.85% oftheissued and outstanding common shares of the Company on a non-diluted basis, or approximately 27.15% on a partially diluted basis, assuming the full exercise of the 15,739,500 common share purchase warrants that Mr. Wilczewski owns or exercises control or direction over.
The purchase of common shares by Mr. Wilczewski is considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied on exemptions from the formal valuation and minority approval requirements in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of Mr. Wilczewski ‘s purchase of common shares. The Company did not file a material change report in respect of the related party transaction less than 21 days prior to the closing of the private placement, which the Company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the private placement in an expeditious manner.
"In the last few months, I have increased my investment by another 3M as I have great confidence and trust in the new team and their strategy" said Mr. Wilczewski.
"We would like to thank Mr. Wilczewski for his strong support and confidence in Helix’s revised strategy, execution plans and team. We look forward to continued efforts toward this exciting program" said Mr. Gabor, CEO of Helix.
The Company intends to use the net proceeds of the private placement for working capital and advancing the Company’s L-DOS47 drug development program.