PROTECH HOME MEDICAL ANNOUNCES INCREASE TO PREVIOUSLY ANNOUNCED BOUGHT DEAL OFFERING
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Cincinnati, Ohio – October 11, 2018 – Protech Home Medical Corp. (“PHM” or the “Company”) (TSXV: PHM), is pleased to announce that it has amended the terms of its previously announced bought deal offering of common shares (the “Offered Shares”) of the Company. Under the amended terms of the Offering (as defined below), Beacon Securities Limited (“Beacon”) has agreed to purchase, on a bought deal basis, 25,000,000 Offered Shares of the Company at a price of $0.12 per Offered Share (the “Issue Price”), for aggregate gross proceeds to the Company of $3,000,000 (the “Offering”).
In addition, the Company has granted the Underwriter an option (the “Underwriter’s Option”), exercisable, in whole or in part, giving notice to the Company at any time up to 48 hours prior to the Closing Date (as defined below), to purchase up to an additional 3,750,000 Offered Shares at the Issue Price for additional gross proceeds of up to $450,000. In the event the Underwriter’s Option is exercised in full, the gross proceeds to the Company will be $3,450,000.
The net proceeds from the Offering will be used for working capital and general corporate purposes.
The completion of the Offering is expected to occur on or about October 31, 2018 (the “Closing Date”) and is subject to the completion of formal documentation and receipt of applicable regulatory approvals, including the approval of the TSX Venture Exchange (“TSXV”). All securities issued in connection with the Offering will be subject to a four month hold period from the Closing Date in accordance with applicable Canadian securities laws.
The Offered Shares will be offered on a private placement basis in each of the provinces of Canada and may be offered in the United States on a private placement basis pursuant to an exemption from registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and such other jurisdictions as may be agreed upon by the Company and the Underwriter.
The Offered Shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.