IZOZF - Izotropic Corporation Announces Closing of Second Tranche of Non-Brokered Private Placement
(TheNewswire)
V ancouver , BC - TheNewswire - October 30, 2020 - Izotropic Corporation (" Izotropic " or the " Company ") (CSE: IZO ) (C NSX : IZO. CN ) (OTC: IZOZF )(FSE: 1R3 ) -Further to the Company's News Release of October 20, 2020, the Companyis pleased to announce that it has completed thesecond and final tranche of its non-brokeredprivate placement financing (the " Offering "),whereby the Company issued 2,866,334 units (each, a " Unit ") at aprice of $0.55 per Unit for gross proceeds of $1,576,483.70. TheCompany received an aggregate of $4,060,870 from the first and secondtranche of the Offering.
Each Unit consists of one common share and onetransferable warrant (each, a " Warrant "), andeach Warrant entitles the holder to purchase one additional share at aprice of $0.75 per share for a period of two years from closing of theOffering, subject to the Acceleration Right (as defined below) suchthat:
- i. at any time after the date that isfour months and one day after the issue date of the Warrants, if, forat least ten (10) consecutive trading days, the closing price at whichthe Shares trade on the Canadian Securities Exchange (the" Exchange ") each day exceeds $1.25 per Share, the Company mayissue a notice (the " Acceleration Notice ") to the holder(which Acceleration Notice will be given to the holder by the Companyby disseminating a press release) to accelerate the expiry date of theWarrants (the " FirstAcceleration Right ") ;
- ii. 50% of the then unexercised Warrantswill terminate on the date that is thirty (30) days from the date ofthe Acceleration Notice in the event that the holder has not exercisedthe Warrants in accordance with the terms of the Acceleration Noticeby such date;
- iii. at any time after the date that isfour months and one day after the issue date, if, for at least ten(10) consecutive trading days, the closing price at which the Sharestrade on the Exchange each day exceeds $1.75 per Share, the Companymay issue a notice (the " Second Acceleration Notice ") to theholder (which Second Acceleration Notice will be given to the holderby the Company by disseminating a press release) to accelerate theexpiry date of the Warrants (the " Second Acceleration Right " and together with the First Acceleration Right, the" AccelerationRight "), and
- iv. 50% ofthe then outstanding Warrants will terminate on the date that isthirty (30) days from the date of the Second Acceleration Notice inthe event that the holder has not exercised the Warrants in accordancewith the terms of the Second Acceleration Notice by suchdate.
The use of proceeds from the Offering will be used forfinal engineering and product development of the Company's firstcommercial breast CT unit, production of commercial units, the initialFDA study; and general working capital.
The Company paid an aggregate of $112,242.06 and issuedand aggregate of 182,701 broker warrants in connection with theclosing of the first and second tranche of the Offering. Each brokerwarrant will entitle the holder to purchase one additional share at aprice of $0.55 per share for a period of two years from closing of therespective tranche.
All securities issued in connection with the Offeringwill be subject to a statutory hold period of four months and one dayfrom the date of issuance in accordance with applicable securitieslegislation.
ON BEHALF OF THE BOARD
Robert Thast
Chief Executive Officer
Phone: 1-833-IZOCORP
Email: info@izocorp.com
Website: izocorp.com
About Izotropic Corp.
Izotropic Corporation and its wholly owned U.S.operating subsidiary, Izotropic Imaging Corp. have been established tocommercialize the next generation of breast imaging technology forearly diagnosis of breast cancer. The Izotropic Breast CT ImagingSystem produces high resolution breast images in 3D. A single 10second breast CT scan acquires approximately 500 images, withoutpainful breast compression, providing radiologists with fully 3Dviewing of the scanned breast. Mammography scanning requirescompression of the breast between 2 imaging plates, resulting in 2Dimages.
The Company has the exclusive worldwide license fromthe University of California, Davis to commercialize the technologydeveloped by principal founder and Company director Dr. John M. Booneand researchers at UC Davis. The license includes all intellectualproperty, trade secrets, patents and patent-pending applications thatare the foundation of the Company's breast CT imaging platform.
Approximately $20 million in research funding and over15 years of research and development have been invested in developingthis groundbreaking breast CT imaging technology. Research includes acurrent, ongoing $2.9M U.S. clinical trial at UC Davis Medical Center.
The Company founders believe that this technology willbe a disruptive entry to the market, overcoming many of the challengesfaced by existing breast imaging modalities.
Forward Looking Statements
This document may contain forward-looking statementsthat are based on the Company's expectations, estimates andprojections regarding its business and the economic environment inwhich it operates. These statements are not guarantees of futureperformance and involve risks and uncertainties that are difficult tocontrol or predict. Therefore, actual outcomes and results may differmaterially from those expressed in these forward-looking statementsand readers should not place undue reliance on such statements.Statements speak only as of the date on which they are made and theCompany undertakes no obligation to update them publicly to reflectnew information or the occurrence of future events or circumstances,unless otherwise required to do so by law.
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