IGXT - IntelGenx Announces Closing of Previously Announced Subsequent Non-Brokered Private Placement With atai Life Sciences for Aggregate Gross Proceeds of US$750000 | Benzinga
SAINT LAURENT, Quebec, Dec. 05, 2023 (GLOBE NEWSWIRE) -- IntelGenx Technologies Corp. (TSX:IGX) (OTCQB:IGXT) ("IntelGenx" or the "Company") announces the closing of the previously announced subsequent non-brokered private placement (the "Subsequent atai Subscription") of 750 units ("US Units") with atai Life Sciences AG ("atai") for aggregate gross proceeds of US$750,000, on the same terms as the August 31, 2023, offering of units (the "Initial Offering" and together with the Subsequent atai Subscription, the "Offering"), following the Shareholder Approvals (as defined below) obtained at the special meeting held on November 28, 2023 (the "Special Meeting").
atai, a significant shareholder and partner of the Company, subscribed, on the date hereof, for 750 US Units at a price of US$1,000 per US Unit, each US Unit being comprised of a US$1,000 principal amount convertible promissory note (the "US Notes") and 5,405 common stock purchase warrants (the "US Warrants"). The US Notes are convertible into shares of common stock of the Company (the "Shares") at the option of atai at a price of US$0.185 (the "US Conversion Price") at anytime following their issuance up to and including August 31, 2026, and bear interest at 12% per annum, payable quarterly, in arrears. The US Warrants entitle atai to purchase Shares at a price of US$0.26 per Share until December 4, 2026.
All securities issued in connection with the Subsequent atai Subscription, including Shares issuable pursuant to the conversion of the US Notes or exercise of the US Warrants, are subject to a 6-month hold period, during which time trading in the securities is restricted in accordance with applicable securities laws.
Shareholder Approvals
The Company announced on November 28, 2023, that the shareholders (the "Shareholders") voted to approve all of the proposals related to certain financing transactions involving atai previously disclosed by the Company on August 31, 2023 (the "Financing Transactions"), including the following proposals required for the Company to proceed with the Financing Transactions not previously closed:
- the issuance of Shares at prices which may be less than the minimum price permitted under the rules of the TSX (the "Pricing Shareholder Approval");
- the issuance of Shares in excess of 24.99% of the issued and outstanding Shares in connection with the Financing Transactions ...