Theralase® Closes $2.5M Private Placement Equity Financing

Rhea-AI Summary

Theralase Technologies Inc. (TSXV: TLT, OTCQB: TLTFF) has successfully closed a non-brokered private placement, issuing 10,000,000 units at $0.25 each, raising approximately $2,500,000. Each unit comprises one common share and one warrant, exercisable at $0.35 for 24 months. Proceeds will fund GLP Toxicology studies for Rutherrin, advance Phase II NMIBC clinical studies, and general corporate needs. The offering included insider subscriptions of 2,400,000 units worth $600,000, exempt from formal valuation requirements. All securities are subject to a four-month hold period.

Positive

• Raised approximately $2,500,000 through the private placement.
• Funding allocated for important toxicology studies and clinical trials.
• Insider participation demonstrates confidence in the company's prospects.

Negative

• Insider transactions may raise concerns regarding governance and minority shareholder protection.

TORONTO, Sept. 22, 2022 (GLOBE NEWSWIRE) -- Theralase^® Technologies Inc. (“Theralase^®” or the “Company”) (TSXV: TLT) (OTCQB: TLTFF), a clinical stage pharmaceutical company focused on the research and development of light activated Photo Dynamic Compounds (“PDCs”) and their associated drug formulations, used to destroy various cancers, bacteria and viruses, safely and effectively, is pleased to announce that it has closed a non-brokered private placement offering (“Offering”) of units (“Units”). On closing, the Corporation issued an aggregate of 10,000,000 Units at a price of $0.25 per Unit for aggregate gross proceeds of approximately $2,500,000.

Each Unit consisted of one common share of the Company (“Common Share”) and one common share purchase warrant (“Warrant”). Each Warrant entitles the holder to acquire an additional Common Share at an exercise price of $0.35 per share for a period of 24 months following the date of issuance.

In connection with the Offering, the Company paid a finder’s fee of $10,167 in cash and 76,800 in Common Shares at a price of $0.25 per Common Share and issued 58,734 finder’s warrants. Each finder’s warrant is exercisable into one Common Share at an exercise price of $0.35 per share for a period of 24 months after the closing of the Offering.

The Company intends to use the proceeds of the Offering for the following:

• Good Laboratory Practice (“GLP”) Toxicology Study for Intravenous installation of Rutherrin intended for the treatment of Non Small Lung Cancer (“NSCLC”) and Glio Blastoma Multiforme (“GBM”)
• Advancement of Phase II Non-Muscle Invasive Bladder Cancer (“NMIBC”) clinical study
• Working capital and general corporate purposes
  

The securities referred to in this news release have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any applicable securities laws of any state of the United States, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act) or persons in the United States unless registered under the U.S. Securities Act and any other applicable securities laws of the United States or an exemption from such registration requirement is available. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities offered in any jurisdiction in which such offer, solicitation or sale would be unlawful, including the United States.

All securities issued under the Offering will be subject to a four month and one day hold period from the closing date under applicable Canadian securities laws, which expires on January 22, 2023. The Offering is subject to receipt of final acceptance from the TSX Venture Exchange.

Related Party Transactions
An aggregate of 2,400,000 Units, representing gross proceeds of $600,000, were issued to certain insiders of the Corporation. Pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and TSX Venture Exchange Policy 5.9, such insider subscriptions are a “related party transaction.” The Corporation is exempt from the formal valuation requirement of MI 61-101 in connection with the insider subscriptions in reliance on section 5.5(b) of MI 61-101, as no securities of the Corporation are listed or quoted for trading on the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ stock market or any other stock exchange outside of Canada and the United States. Additionally, the Corporation is exempt from obtaining minority shareholder approval in connection with the insider subscriptions in reliance on section 5.7(1)(a) of MI 61-101 as the aggregate value of the insider subscriptions does not exceed 25% of the market capitalization of the Corporation. Due to the limited time between the launch and the close of the Offering, there will be less than 21 days between the date the Corporation files its material change report in respect of the Offering and the completion date of the Offering.

About Theralase^® Technologies Inc.
Theralase^® is a clinical stage pharmaceutical company dedicated to the research and development of light activated compounds and their associated drug formulations with a primary objective of efficacy and a secondary objective of safety in the destruction of various cancers, bacteria and viruses.

Additional information is available at www.theralase.com and www.sedar.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable Canadian securities laws. Such statements include, but are not limited to, statements regarding the Company's proposed development plans with respect to Photo Dynamic Compounds and their drug formulations. Forward looking statements may be identified by the use of the words "may, "should", "will", "anticipates", "believes", "plans", "expects", "estimate", "potential for" and similar expressions including statements related to the current expectations of Company's management for future research, development and commercialization of the Company’s Photo Dynamic Compounds and their drug formulations, including preclinical research, clinical studies and regulatory approvals.

These statements involve significant risks, uncertainties and assumptions; including, the ability of the Company to: adequately fund and secure the requisite regulatory approvals to successfully complete a Phase II NMIBC clinical study in a timely fashion to implement its development plans. Other risks include: the ability of the Company to successfully commercialize its drug formulations, the risk that access to sufficient capital to fund the Company’s operations may not be available or may not be available on terms that are commercially favorable to the Company, the risk that the Company’s drug formulations may not be effective against the conditions tested in its clinical studies, the risk that the Company’s fails to comply with the term of license agreements with third parties and as a result loses the right to use key intellectual property in its business, the Company’s ability to protect its intellectual property, the timing and success of submission, acceptance and approval of regulatory filings, and the impacts of public health crises, such as COVID-19. Many of these factors that will determine actual results are beyond the Company's ability to control or predict.

Readers should not unduly rely on these forward- looking statements, which are not a guarantee of future performance. There can be no assurance that forward-looking statements will successfully come to fruition, as such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results or future events to differ materially from the forward-looking statements.

Although the forward-looking statements contained in the press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements.

All forward-looking statements are made as of the date hereof and are subject to change. Except as required by law, the Company assumes no obligation to update such statements.

For More Information:
1.866.THE.LASE (843.5273)
416.699.LASE (5273)
www.theralase.com

Kristina Hachey, CPA
Chief Financial Officer
khachey@theralase.com
416.699.LASE (5273) x 224

FAQ

What is Theralase Technologies Inc. doing with the funds raised in the private placement TLTFF?

Theralase intends to use the funds for GLP Toxicology studies for Rutherrin, advancement of Phase II NMIBC clinical studies, and general corporate purposes.

How much did Theralase raise in its recent private placement?

Theralase raised approximately $2,500,000 by issuing 10,000,000 units at $0.25 each.

What are the terms of the warrants issued in Theralase's private placement?

Each warrant allows the holder to acquire an additional common share at $0.35 per share for 24 months after issuance.

Were there any insider transactions in Theralase's private placement?

Yes, an aggregate of 2,400,000 units were issued to insiders, totaling gross proceeds of $600,000.

What is the hold period for the securities issued in Theralase's offering?

All securities issued will be subject to a four-month hold period from the closing date, expiring on January 22, 2023.