Voyageur Pharmaceuticals Ltd. (TSX-V: VM) announced Friday the closing of its non-brokered private placement, raising total aggregate gross proceeds of $5,005,278.32. The offering, conducted under the Listed Issuer Financing Exemption (LIFE), consisted of 30,935,000 units at $0.10 per unit and 15,931,486 flow-through units at $0.12 per FT unit. This financing is a critical step for the company as it advances its portfolio of pharmaceutical-grade barium and iodine products for medical imaging contrast media.
Each unit includes one common share and one warrant exercisable at $0.20 for 36 months, while each FT unit comprises one flow-through common share and one warrant with the same terms. The warrants are not exercisable until 70 days after issuance and contain an acceleration clause allowing the company to shorten the expiry to 60 days if the share price reaches $0.40 for 10 consecutive trading days after six months. This structure provides investors with potential upside while offering Voyageur flexibility in managing its capital.
The company paid cash commissions of $192,040 and issued 1,920,400 broker warrants in connection with the units, and $145,802.25 in cash and 1,215,019 broker warrants for the FT units. The securities issued under the LIFE Exemption are not subject to a statutory hold period under Canadian securities laws but may be legended per TSX Venture Exchange requirements. This exemption streamlines the offering process and reduces regulatory burdens.
Voyageur plans to use the net proceeds for FDA licensing of its barium contrast product suite, regulatory approvals for the Frances Creek bulk sample extraction, feasibility work at Frances Creek, U.S. iodine project development, and general corporate purposes. The company, a developer of pharmaceutical-grade barium and iodine for medical imaging contrast media, aims to become the first vertically integrated company in the radiology contrast media drug market. This vertical integration could provide competitive advantages in supply chain control and cost management.
Insiders subscribed for 900,000 units, representing 1.92% of the securities issued, increasing their non-diluted ownership to 0.41%. The participation constituted a related party transaction under Multilateral Instrument 61-101, but the company is exempt from formal valuation and minority shareholder approval requirements as the transaction's fair market value does not exceed 25% of market capitalization. The offering was unanimously approved by the board, including directors who did not subscribe.
A copy of the amended offering document is available on SEDAR+ and the company's website at Voyageur Pharmaceuticals. The successful closing of this placement positions Voyageur to execute its strategic milestones, which are pivotal for its growth in the radiology contrast media sector. The funds are expected to accelerate regulatory processes and advance the company's projects, potentially leading to new product approvals and market entry.
