Shares sold at C$0.60 apiece to Whole Vision, related companies
By Jennifer Chiou
New York, Oct. 22 - China Health Labs & Diagnostics Ltd. (formerly CCS Capital Inc.) said it pocketed gross proceeds of C$3,664,700 via a private placement of 6,107,834 ordinary shares with Whole Vision Ltd.
The Vancouver, B.C.-based biotech company said in a news release that Whole Vision includes Biochem Hengye Science & Technology Development Co., Ltd. and other related and associated companies.
The shares were sold at C$0.60 each. The price represents a 14.29% discount to the closing share price of CCS on Sept. 10, just before shares were suspended from trading.
Canaccord Genuity Corp. was the agent.
Funds from the financing will be used to further the company's business objectives of developing its rural "total lab solution" business, the release noted. Proceeds will also go towards research and development as well as general working capital purposes.
In addition, China Health said it will grant options at the same terms to acquire an aggregate of 3,375,000 shares to its directors and officers. The options have an exercise period of 10 years.
In other news and subject to approval from the TSX Venture Exchange, the company said it plans to engage Infinity Alliance Corp. to provide investor relations and business development services. In consideration, the company would grant options for 100,000 shares in China Health exercisable at a price of C$0.60 per share and vesting over 12 months, with 25% vesting immediately and 25% vesting every three months thereafter.
China Health said that it expects its shares to resume trading on Monday under "CHO."
| Issuer: | China Health Labs & Diagnostics Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | C$3,664,700
|
| Shares: | 6,107,834
|
| Price: | C$0.60
|
| Investors: | Whole Vision Ltd. along with Biochem Hengye Science & Technology Development Co., Ltd. and others
|
| Agent: | Canaccord Genuity Corp.
|
| Announcement date: | Oct. 22
|
| Stock symbol: | CVE: CSW.P
|
| Stock price: | C$0.70 at close Sept. 10
|
| Market capitalization: | C$4.27 million
|
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