NEW YORK (GenomeWeb News) – Response Biomedical said today that it has grossed C$12.7 million ($11.1 million) through a public offering, and it plans to use the funds for general operating costs and for capital acquisitions.
The company said it issued 73,333,333 units at a price of C$0.15 per unit, and that it concurrently issued an additional 11 million units pursuant to the exercise-in-full of an over-allotment option it granted to the underwriter.
Each unit consists of one common share and one-half of one common warrant, with each warrant entitling the shareholder to buy an additional common share at C$.25.
Response also granted 2.53 million common share warrants to the underwriter, with each broker's warrant entitling the holder to buy one common share at $C.25 within 24 months of the closing date of the offering.
Response Biomedical also said it expects the sale to move the Toronto Stock Exchange to terminate a delisting review of the company's shares.