Covalon Technologies Ltd. completed a nonbrokered private placement offering of 1,190,671 units, priced at C$1.96 apiece, for gross proceeds of about C$2.3 million.

Further, 775,000 previously issued common share purchase warrants were exercised for aggregate proceeds of C$775,000.

Each unit consists of 1 common share and 1 common share purchase warrant which can be used to acquire an additional common share for C$2.30 per share for three years from the closing date.

Company insiders who participated in the offering purchased 765,351 units for gross proceeds of about C$1.5 million.

All securities issued pursuant to the offering will be subject to a hold period expiring Oct. 2.

The company will use proceeds to develop and commercialize new wound care products, expand international distribution channels and for general working capital.