IBO:CC - Universal Ibogaine Undertaking Offering of Convertible Debt Securities and Common Shares
(TheNewswire)
Calgary, AB – TheNewswire - October 3, 2022 – Universal Ibogaine Inc. ( TSXV:IBO ) (“ UI ” or the “ Company ”), a life sciences company with amission to deliver medicalized ibogaine-centered addiction care,advises that it is in process of finalizing an offering (the“ Offering ”) of convertible debt securities. The Offering willconsist of “Secured Guarantee Convertible Notes” (the“ Notes ”) which will bear interest at 8% (payable quarterly) andhave a maturity of 3 years from the Closing ofthe Offering. Closing of the Offering, and the payment of anyfinders fees related thereto, is subject to the required approvals ofthe TSX Venture Exchange.
On a future conversion, the holder of the Notes willreceive one “ Unit ” comprised of one UI common share and aone-half common share purchase warrant (a “ Warrant ”). TheNotes will have a conversion price of $0.10 per common share in year 1after Closing, $0.15 for year 2, and $0.20 for year 3. Each wholeWarrant will have an escalating annual exercise price which will be$0.20 if converted in year 1 (after Closing), $0.40 if converted inyear 2, and $0.50 if converted in year 3 after Closing. The Noteswill be subordinated to the Company’s existing mortgage on theKelburn Recovery Centre and a General Security Agreement will beissued as part of the Closing by UI’s BC based 100% owned subsidiarycompany (which in turn owns the Company’s Kelburn Recovery Centreaddiction treatment clinic near Winnipeg and a 20 acre undevelopedland project in Belize).
The proceeds from the Offering are intended to be usedin completing the Company’s planned ibogaine based clinical trialapplication with Health Canada, including finalizing a supplyagreement for ibogaine to be used in the eventual trials, and forgeneral working capital purposes.
Nick Karos, UI CEO, noted “we are pleased to havegenerated support for this Offering, for which we intend to finalizecommitments shortly for a funding target of up to $15 million. Thisfunding will help to advance UI to its next stage of development inour ultimate goal of having ibogaine medicalized and accepted forwide-scale use in addiction treatments.”
In addition to the convertible debenture, UI intends toundertake a private placement Offering of up to 15 million commonshares at a price of $0.025 per common share.
About UniversalIbogaine Inc.
UI is a life sciences company, with a mission totransform addiction treatment using medicalized ibogaine through aplanned Canadian clinical trial focused on opioid use disorder, andultimately to utilize that protocol globally through planned futurelicensing agreements. UIis concurrently developing a state of the art holistic addictiontreatment protocol at its Kelburn Recovery Centre that, which whenpaired with the planned ibogaine detox protocol, is intended torevolutionize the way we treat addiction and drastically improve thelives of individuals and families affected byaddiction.
NEITHER THE TSXVENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM ISDEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTSRESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THISRELEASE.
CAUTIONARY STATEMENTREGARDING FORWARD-LOOKING STATEMENTS
?This news release may containforward-looking statements and information. Forward-lookinginformation is frequently characterized by words such ?as"plans", "expect", "project","intend", "will", "believe","anticipate", "estimate", "scheduled",??"potential", or other similar words, or statementsthat certain events or conditions "may", "should"or ??"could" occur. The forward-looking statements andinformation are based on certain key expectations ?and assumptionsmade by UI. Although UI believes that the expectations andassumptions on which the forward-?looking statements are based arereasonable, undue reliance should not be placed on theforward-?looking statements because UI can give no assurance thatthey will prove to be correct.
Since ?forward-looking statementsaddress future events and conditions, by their very nature theyinvolve ?inherent risks and uncertainties. Actual results coulddiffer materially from those currently anticipated ?due to a numberof factors and risks, which include, but are not limited to, risksthat required ?regulatory approvals are not obtained. The reader is cautioned thatassumptions used in the ?preparation of such information, althoughconsidered reasonable by UI at the time of ?preparation, may proveto be incorrect and readers are cautioned not to place undue relianceon ?forward-looking information, which speaks only to conditions asof the date hereof. UI does not ?undertake any obligation torelease publicly any revisions to forward-looking informationcontained ?herein to reflect events or circumstances that occurafter the date hereof or to reflect the occurrence ?of unanticipatedevents, except as may be required under applicable securities laws.?
For furtherinformation:
InvestorRelations: Dugan Selkirk,IR Manager
dugan.selkirk@universalibogaine.com
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