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WINNIPEG, Manitoba, Jan. 20, 2025 (GLOBE NEWSWIRE) -- Kane Biotech Inc. (TSX-V:KNE OTCQB:KNBIF) (the “Company”, “Kane” or “Kane Biotech”) announces that today it has completed the first closing of its previously announced non-brokered private placement offering (the “Offering”) of common shares of the Company (“Shares”). At the first closing Kane issued 12,750,000 Shares at a price of $0.10 per Share for aggregate gross proceeds of $1,275,000.
Insiders, including management and board members, acquired an aggregate of 3,700,000 Shares ($370,000) (the “Insider Subscription”). The Insider Subscription is deemed to be a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the formal valuation and minority approval requirements for related party transactions pursuant to Subsection 5.5(a) and Subsection 5.7(a) of MI 61-101, respectively.
The net proceeds of the Offering will be used for working capital and general corporate purposes.
All securities issued in connection with the Offering are subject to a hold period of four-months and one day in Canada.
In connection with the Offering, the Company paid compensation to eligible finders consisting of a cash commission of $32,100 and 321,000 common share broker warrants (“Broker Warrants”). Each full Broker Warrant entitles the holder thereof to purchase one Share of the Company for a period of 18 months at an exercise price of $0.15 per Share.
The closing of the Offering remains subject to the final approval of the TSX Venture Exchange.
“We have seen a lot of interest in Kane in both Canada and the Unites States,” said Marc Edwards, President & CEO. “With people returning from holidays, we anticipate completing the raise shortly.”
The Company also announced today that the TSXV has granted an extension to the deadline for the completion of the Offering to February 17, 2025. The Company anticipates having an additional closing of the Offering prior to February 17, 2025.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. These securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.