PreveCeutical closes initial tranche of private placement for $646,500

PreveCeutical Medical Inc. (CSE: PREV) (OTCQB: PRVCF) (FSE: 18H) has closed the initial tranche of its previously announced $1 million non-brokered private placement, raising $646,500 in gross proceeds.

The Vancouver-based health sciences company issued 16,162,500 units at $0.04 per unit. Each unit consists of one common share and half of one share purchase warrant. The warrants allow holders to purchase additional shares at $0.06 each for 24 months from the closing date.

The warrants include an acceleration provision that allows PreveCeutical to shorten the expiry period if its shares trade at $0.18 or higher on the Canadian Securities Exchange for at least 10 consecutive trading days. In such cases, the warrants would expire 30 days after the company issues a news release announcing the acceleration.

PreveCeutical paid $23,600 in finder's fees and issued 590,000 finder's warrants in connection with the transaction. The finder's warrants carry the same terms as the unit warrants.

The company stated it will use the proceeds to pay outstanding payables, cover operating expenses and support general working capital requirements. PreveCeutical plans to close a second tranche for the remainder of the offering in coming weeks.

All securities issued are subject to a four-month-and-one-day hold period under applicable securities laws. The securities have not been registered under U.S. securities laws and may not be offered or sold in the United States without registration or an applicable exemption.

PreveCeutical develops preventive and curative therapies using organic and nature-identical products, with research programs focused on gene therapy for diabetes and obesity, peptide treatments, and concussion therapeutics.

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