Agility Health plans to complete a private placement of up to 36 million units at 10 Canadian cents apiece for gross proceeds of C$3.6 million.
Each unit is comprised of one voting common share and one-half of one voting common share purchase warrant. Each warrant will entitle the holder to acquire one voting common share at 14 Canadian cents for a one-year period from the date of the closing of the private placement.
The voting common shares issuable under the private placement and upon exercise of the warrants will be subject to a hold period expiring four months and one day after closing.
Agility plans to use the net proceeds for working capital purposes, including the ongoing development of additional clinics.
The private placement, which is subject to stock exchange approval, is being pursued together with discussions the company is having with certain potential investors and lenders in the U.S who may provide a combination of debt and equity financing of about $40 million to restructure the company's balance sheet.
Agility plans to close the private placement in less than 21 days.
CJC Holdings Inc., an insider of Agility, plans to sell up to 8 million voting common shares of the company in the market and to subscribe for up to $800,000 of units.
Agility also said that in accordance with its financial advisory agreement with Maxim Group LLC announced Jan. 31, it issued a total of 113,411 voting common shares to an affiliate of Maxim in consideration for services rendered by Maxim during the period from July 1 to July 31.
The shares were issued at 9 Canadian cents apiece and are subject to a four-month hold period.