PreveCeutical closes first tranche of private placement at $0.03 per unit

PreveCeutical Medical Inc. (CSE: PREV) (OTCQB: PRVCF) (FSE: 18H0) has closed the initial tranche of a non-brokered private placement, raising $156,000 through the issuance of 5,200,000 units priced at $0.03 each, according to a company statement.

The total offering is targeted at $600,000, with the company planning to close a second tranche in the coming weeks. Each unit consists of one common share and one-half of a share purchase warrant. Each whole warrant allows the holder to purchase an additional share at $0.06 for two years from closing, subject to an acceleration clause if the share price reaches $0.11 or more on the Canadian Securities Exchange for at least 10 consecutive trading days.

In connection with the closing, PreveCeutical paid an advisory commission fee of $12,480 to one eligible finder and issued 416,000 advisory commission warrants, exercisable at $0.06 per share for two years.

The company said proceeds will be used for short loan repayments, audit, accounting and legal fees, patents, further research studies, and general working capital. All securities issued are subject to a hold period expiring four months and one day after the initial tranche closing.

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