NESS-ZIONA, Israel, Feb. 21, 2020 (GLOBE NEWSWIRE) -- VAXIL BIO LTD. (“Vaxil” or the “Company”) (TSX VENTURE: VXL), an innovative immunotherapy biotech focused on cancer and infectious 7g convertible debentures (the “Offering”) with a face value of $1,000 (“Principal”) and bearing an annual interest rate (“Interest”) of 10% (“Convertible Debentures”) for gross proceeds of up to $200,000 (“Proceeds”). The Convertible Debentures will accrue interest at 10% per annum and the principal and interest (“Repayment Amount”) will be repayable within one year (“Maturity Date”). The Company shall have the right, but not the obligation, in its sole and absolute discretion, to pay and satisfy the Repayment Amount by the issuance of Common Shares. The conversion price of the Principal shall be $0.07 (“Conversion Price”), All Interest conversions, if any, shall be compliant with Policy 4.3 of the TSXV.
Subscription funds received from arm’s length third parties in the amount $36,000 prior to the issuance of the Recent Press Releases will be subject to the pre Amendment terms of the convertible debenture offering disclosed in the Initial Press Release.
Proceeds will be used as a bridge financing to fund the Company’s working capital while the Company continues to explore alternative financing avenues in order to be able to continue its operations.
The Company expects the offering to close on or around March 2, 2020.
Vaxil’s board of directors are insiders of the Company, and insider participation in the Offering is considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the insiders’ participation in the Offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101.
The Convertible Debentures have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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