Technology
Thursday, October 5th, 2023 5:44 pm EDT
Key Points
- Private Placement and Fundraising: Reliq Health Technologies Inc. successfully closed a private placement, raising $6 million by selling 15 million units. Each unit was priced at $0.40 and consisted of one common share and one common share purchase warrant exercisable at $0.52 over a thirty-month period.
- Involvement of PI Financial Corp.: PI Financial Corp. acted as the agent for Reliq Health Technologies in the private placement on a “best efforts” agency basis. They received an 8.0% cash commission based on the total gross proceeds and non-transferable options to purchase units at the same price.
- Use of Proceeds: The net proceeds from the unit issuance will be utilized for various purposes, including funding growth initiatives, general corporate needs, and working capital requirements. The article does not provide specific details about the allocation of funds for each purpose.
Reliq Health Technologies Inc. has closed its previously announced unit private placement. The corporation raised proceeds of $6-million through the sale of 15 million units. Pursuant to the terms of the Unit Financing, each Unit was offered at a subscription price of $0.40 per Unit. Each Unit consists of one common share and one common share purchase warrant exercisable at $0.52 (the “Warrant Share Price”) for a thirty month period.
PI Financial Corp. (“PI”) acted as agent for the Company on a “best efforts” agency basis in connection with the private placement. Upon closing of the Unit Financing, the Company: (i) paid to PI a cash commission equal to 8.0% of the aggregate gross proceeds of the Unit Financing payable in cash; (ii) issued to PI non-transferable options to purchase, at any time prior to the date that is 30 months from the Closing Date, that number of Units equal to 8.0% of the number of Units issued under the Unit Financing, at an exercise price equal to the Warrant Share Price, subject to adjustment in certain events.
The net proceeds raised from the issuance of the Units will be used to fund growth initiatives, for general corporate and working capital requirements, or for other corporate purposes.
The Unit Financing was completed pursuant to the Listed Issuer Financing Exemption (as defined in National Instrument 45-106 – Prospectus Exemptions), and the securities issued to purchasers in the Unit Financing are not subject to a hold period pursuant to applicable Canadian securities laws, except as to insider hold periods under the polices of the TSX Venture Exchange (the “Exchange”).
Reliq CEO, Lisa Crossley participated in the Unit Financing as to 250,000 Units. The insider participation in the Unit Financing constitutes a related party transaction pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). A material change report was not filed 21 days prior to the closing of the Unit Financing as the Unit Financing was announced on September 27, 2023 and closed on October 5, 2023.
The Unit Financing is subject to the final approval of the Exchange.
Advisors
Dentons Canada LLP acted as counsel to the Company. Cassels Brock & Blackwell LLP acted as counsel to the Agent.
About Reliq
Reliq Health Technologies is a rapidly growing global healthcare technology company that specializes in developing innovative Virtual Care solutions for the multi-billion dollar Healthcare market. Reliq’s powerful iUGO Care platform supports care coordination and community-based virtual healthcare. iUGO Care allows complex patients to receive high quality care at home, improving health outcomes, enhancing quality of life for patients and families and reducing the cost of care delivery. iUGO Care provides real-time access to remote patient monitoring data, allowing for timely interventions by the care team to prevent costly hospital readmissions and ER visits. Reliq Health Technologies trades on the TSX Venture under the symbol RHT, on the OTC as RQHTF and on the Frankfurt Stock Exchange under the WKN: A2AJTB.
