Innovotech Announces Final Approval for Closing of Private Placement
Edmonton - TheNewswire September 2, 2020. Innovotech Inc. (“Innovotech”) (TSXV:IOT) is pleased to announce final approval from the TSX Venture Exchange on the close of the private placement offering (the “Offering”) previously announced on August 24, 2020. At the close, Innovotech raised $375,000 through the issuance of 1,875,000 units ("Units") at a price of $0.20 per Unit. Each Unit is comprised of one (1) common share in the capital of Innovotech (“Common Share”) and one-half (½) Common Share purchase warrant and one whole warrant entitles the holder to purchase one (1) additional Common Share at a price of $0.25 for a period of three (3) years following the date of closing.
If, after four months and one day following the date of closing, the closing price of the Common Shares on the principal market on which such shares trade is equal to or exceeds $0.40 per Common Share for twenty (20) consecutive trading days, then Innovotech will have the right to accelerate the expiry date of the Warrants to thirty (30) calendar days following the date that Innovotech has issued a press release announcing the exercise of the acceleration right and the issuance of the press release shall be deemed to be sufficient notice to all warrant holders of the shortened exercise term as a result of the acceleration, and no further notification will be provided by Innovotech.
Innovotech intends to apply the proceeds from the Offering to general working capital. Innovotech conducted the Offering under various prospectus exemptions in accordance with National Instrument 45-106, Prospectus Exemptions.
The participation in the Offering by an executive officer of Innovotech may be considered a "related party transaction" (the “Related Party”) as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Innovotech has determined that exemptions from the formal valuation and minority shareholder approval requirements under MI 61-101 are available. In particular, Innovotech has determined that the exemptions set out in paragraphs (a) and (b) in section 5.5 of MI 61-101 are applicable since the aggregate consideration to be paid by the Related Party does not exceed 25% of the market capitalization of Innovotech and Innovotech is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange. In addition, regarding the minority shareholder approval exemptions, the independent directors have determined that the exemptions set out in paragraphs (1)(a) and (b) in section 5.7 of MI 61-101 are applicable in that the aggregate consideration to be paid by the Related Party does not exceed 25% of the market capitalization of Innovotech, the distribution of the securities to the Related Party has a fair market value of not more than $2,500,000 and Innovotech is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange.
Pursuant to applicable Canadian securities laws, the securities issued under the private placement are subject to a four-month hold period from the time of closing of the private placement.
About Innovotech Inc.
Innovotech is a Canadian biotechnology company owning proprietary intellectual property, conducting
contract research, and owning and providing proprietary devices for testing in multiple applications in
Director & CFO
This document may contain forward-looking statements that are predictive in nature and subject to risks and
uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past
results and those expressed or implied by any forward-looking statements. Factors that could cause or contribute to
such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of
predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company’s reliance on a small
number of customers including government organizations; fluctuations in operating results; government policies or
actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual
property protection and potential costs associated with its defense; the Company’s exposure to lawsuits and other
matters beyond the control of management. Should known or unknown risks or uncertainties materialize, or should
management’s assumptions prove inaccurate, actual results could vary materially from those anticipated. The
Company undertakes no obligation to publicly make or update any forward-looking statements, except as required
by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy of accuracy of this release.