CNBX Pharmaceuticals Inc (CNBX)

[jim992]

So come Tuesday, YAII can buy ten million dollars worth of shares at a 2 % discount.

It will be interesting, since the price is currently around $ 1, to see how quickly they exercise their right to buy so as to maximize the number of shares they can buy.

They have 36 months to spend the 10 million dollars, so to take advantage of the deal, they have to average around 3 million dollars a month over the 3 years.

3 million extra shares a month! Not too shabby of a deal for us shareholders!!!!

This is some of the best news I have seen come out of CNBX.

Here is the excerpt and a link to the 8K that stated this is below:

On April 30 th , 2018, the Company entered into a Standby Equity Distribution Agreement (the “Agreement”) with YAII PN, Ltd., ("YAII PN Ltd.”). The Standby Equity Distribution Agreement (SEDA) with YAII PN enables the selling of up to $10,000,000 of our common stock at the Company’s request any time during the 36 months following the date of the agreement entered on May 8 th , 2018. The shares would be purchased at 98% of the market price and would be subject to certain limitations, including that YAII PN could not purchase any shares that would result in it owning more than 4.99% of our common stock.

Pursuant to the Purchase Agreement, we are required to register all shares which YAII PN Ltd. may acquire. The Company shall file with the Securities and Exchange Commission a prospectus supplement to the Company's prospectus, dated April 21, 2017, filed as part of the Company's effective shelf registration statement on Form S-3, File No. 333-216845, registering all of the shares of Common Stock that are to be offered and sold to YAII PN Ltd. pursuant to this Agreement.

Pursuant to the Agreement, we shall use the net proceeds from any sale of the shares for working capital purposes and capital expenditures. There are no other restrictions on future financing transactions. The Purchase Agreement does not contain any right of first refusal, participation rights, penalties or liquidated damages. We did not pay any additional amounts to reimburse or otherwise compensate YAII PN Ltd. in connection with the transaction.

YAII PN Ltd. has agreed that neither it nor any of its affiliates shall engage in any short-selling or hedging of our Common Stock during any time prior to the public disclosure of the Agreement.

https://ih.advfn.com/p.php?pid=nmona&article=77322977