PreveCeutical Secures $300,000 Loan and Resignation of a Director
FOR IMMEDIATE RELEASE - Vancouver, British Columbia: PreveCeuticalMedical Inc.(the “Company” or “PreveCeutical”) (CSE: PREV, OTCQB: PRVCF, FSE: 18H) announces that it has received a loan in the aggregate amount of $300,000 (the “Loan”) pursuant to a loan agreement with the Company’s Chairman and Chief Executive Officer, Mr. Stephen Van Deventer (the “Lender”).
Loan Details
The Loan has a one-year term and will bear interest at a rate of 5% per annum, compounded semi-annually and payable on the maturity date. Pursuant to the Loan, the Company has also granted 5,000,000 transferable bonus common share purchase warrants (each, a “Bonus Warrant”) to the Lender. Each Bonus Warrant will entitle the holder to purchase one common share in the capital of the Company at an exercise price of $0.06 per share for a period of one year from the grant date. All securities issued pursuant to the Loan will be subject to a hold period of four months and one day in Canada from the date of issuance. The funds received by the Company from the Loan will be used for general working capital purposes.
As the Lender is a current director and executive officer of the Company, the Loan constituted a related party transaction pursuant to Multilateral Instrument 61 101 - Protection of Minority Security Holders in Special Transactions(“MI 61-101”). The Company relied on Sections 5.5(a) and 5.7(1)(a) of MI 61-101 for an exemption from the formal valuation and minority shareholder approval requirements, respectively, of MI 61-101, as, at the time the Loan was made available to the Company, neither the fair market value of the subject matter of, nor the fair market value of the consideration for the Loan exceeded 25% of the Company’s market capitalization.
Resignation of a Director
Mr. Greg Reid has stepped down as a director of the Company, effective May 31 2019, to allow for more time to focus on his film making career and Keynote Speaker commitments.
PreveCeutical’s President and Chief Science Officer, Dr. Mak Jawadekar stated, “Greg has served on the PreveCeutical board of directors since the company went public in 2017. He has made many contributions to the success and growth of the company, drawing on his wealth of experience and contacts from his successful business career. On behalf of the board of directors, the management team and our shareholders, I thank Greg and wish him all the best in the future.”
About PreveCeutical
PreveCeutical is a health sciences company that develops innovative options for preventive and curative therapies utilising organic and nature identical products.
PreveCeutical aims to be a leader in preventive health sciences and currently has five research and development programs, including: dual gene therapy for curative and prevention therapies for diabetes and obesity; the Sol-gel Program; Nature Identical™peptides for treatment of various ailments; non-addictive analgesic peptides as a replacement to the highly addictive analgesics such as morphine, fentanyl and oxycodone; and a therapeutic product for treating athletes who suffer from concussions (mild traumatic brain injury).
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