iX Biopharma plans to raise $2.7 million by placing out 13.7 million new shares at 20 cents each to C2C Biopharma, described as the investment vehicle of one Lundy Nath.
According to iX Biopharma, Nath has more than 20 years of corporate experience in the US and Cambodia, in the health and wellness industries and can help generate “new opportunities”.
The placement price of 20 cents is a 15% premium to the company’s volume-weighted average price of 17.43 cents on July 12.
The subscription shares will increase the company’s share capital by 1.79% to 764.9 million shares.
iX Biopharma plans to use around 60% of the proceeds for the development, manufacturing and marketing activities required to expand its nutraceutical and medicinal cannabis businesses into new markets including the United States.
The remaining 40% will be set aside for general working capital.
iX Biopharma closed at 18 cents, up 2.49% for the day but down 16.67% year to date.