BioNxt Solutions Announces Closing of Fully Subscribed Private Placement of Convertible Debentures

Rhea-AI Summary

BioNxt Solutions Inc. has successfully closed a non-brokered private placement of convertible debentures, raising $2,808,000. The debentures bear an 8% annual interest rate and are convertible into units at $0.52 per unit, each consisting of one share and a half warrant. The offering included a cash fee of $224,640 and issuance of 432,000 finder warrants. Proceeds will support general working capital. The company focuses on innovative drug formulations and diagnostics in Europe.

Positive

• Raised a total of $2,808,000 from the private placement.
• Convertible debentures carry an 8% interest rate, providing attractive returns.
• Debentures can be converted into units, enhancing equity potential for investors.

Negative

• The offering could lead to potential dilution of existing shares if debentures are converted.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / December 7, 2022 / BioNxt Solutions Inc. ("BioNxt" or the "Company") (CSE:BNXT)(OTCQB:XPHYF)(FSE:4XT), is pleased to announce today that it has closed its non-brokered private placement of convertible debentures (the "Offering"), pursuant to which it raised the principal amount of $2,808,000 (the "Principal Amount").

The convertible debenture (the "Debenture") bears interest at a rate of 8% per annum from the date of issue (the "Issue Date"), calculated and payable semi-annually and matures two years following the Issue Date.

The Principal Amount and any accrued and unpaid interest on the Debenture may be convertible at the election of the holder into units of the Company (the "Units") at a conversion price of $0.52 per Unit. Each Unit consists of one common share (a "Share") and one-half of one common share purchase warrant (each, a "Warrant"). Each Warrant will be exercisable into one Share (each, a "Warrant Share") at an exercise price of $0.80 per Warrant Share for a period of 24 months after the Issue Date.

In accordance with applicable securities laws, all securities issued under the Offering will be subject to a four month and one day hold period from the Issue Date.

In connection with the Offering, the Company paid a cash fee of $224,640 and issued 432,000 finder warrants (the "Finder's Warrants") to Canaccord Genuity Corp. Each Finder's Warrant entitles the holder thereof to purchase one Share at an exercise price of $0.52 for a period of 24 months from the date of issuance.

The Company intends to use the net proceeds from the Offering for repayment general working capital purposes.

This news release does not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Debentures and the Shares which may be issued on exercise thereof have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

About BioNxt Science Inc.

BioNxt Solutions Inc. is a bioscience accelerator focused on next-generation drug formulations and delivery systems, diagnostic screening tests, and new active pharmaceutical production and evaluation, including: precision transdermal and oral dissolvable drug formulations; rapid, low-cost infectious disease and oral health screening tests; and standardization and clinical evaluation of emerging active pharmaceutical ingredients for neurological applications. The Company has research and development operations in North America and Europe, with an operational focus in Germany, and is currently focused on regulatory approval and commercialization of medical products for European markets.

BioNxt Solutions Inc.

Hugh Rogers, CEO and Director
Email: info@bionxt.com
Phone: +1 780-818-6422

Cautionary Statement Regarding "Forward-Looking" Information

Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

SOURCE: BioNxt Solutions Inc.

View source version on accesswire.com:
https://www.accesswire.com/730843/BioNxt-Solutions-Announces-Closing-of-Fully-Subscribed-Private-Placement-of-Convertible-Debentures

FAQ

What is the purpose of BioNxt Solutions' recent funding announcement?

BioNxt Solutions raised $2,808,000 in a private placement to support general working capital.

What are the terms of the convertible debentures issued by BioNxt Solutions?

The debentures bear an 8% interest rate and are convertible at $0.52 per unit, each unit includes one share and half a warrant.

How long do the convertible debentures from BioNxt Solutions last?

The debentures mature two years following the issue date.

What is the exercise price for the warrants associated with the BioNxt Solutions' offering?

The warrants can be exercised for one share at an exercise price of $0.80 per warrant share.

What type of company is BioNxt Solutions Inc.?

BioNxt Solutions is a bioscience accelerator focused on drug formulations and diagnostic systems.