BIOREM Inc. (TSXV:BRM) is pleased to announce a proposed private placement of up to 1,500 Units at a price per Unit of $1,000 for gross proceeds of up to $1.5 million. Each Unit will consist of $1,000 principal amount of 8.00% convertible extendible secured subordinated debentures (the "Debentures") with a maturity date 2 years from the date of issuance and 4,545 common share purchase warrants (the "Warrants").
The Debentures will be convertible into fully paid and non-assessable Common Shares of the Company at the option of the holder at any time over their term at a price of $0.11 per Common Share. The maturity date of the Debentures can be extended to the fifth anniversary date of the issuance date of the Debentures by holders of 66.67% of the then outstanding principal amount of Debentures. The Debentures can be prepaid in full at any time by the Company upon giving holders 15 days notice of prepayment. Each Warrant entitles the holder to purchase one common share at a price of $0.11 per share for a period of two (2) years from issuance. All securities issued pursuant to the Private Placement will be subject to a four month hold pursuant to applicable securities legislation. The private placement is expected to close within the next forty-five days and is subject to regulatory approval. BIOREM intends to use the proceeds from the private placement for working capital and general corporate purposes.
BIOREM anticipates that insiders may subscribe for greater than 25% of the private placement. The issuance of Units to insiders pursuant to the private placement is considered to be a related party transaction subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. Biorem intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(c) and 5.7(b) of Multilateral Instrument 61-101 on the basis that the private placement constitutes a distribution of securities for cash to insiders which is within the parameters of those sections.
In addition, the Board of Directors is pleased to announce the appointment of Mr. Bernardo Llovera to the role of Chair of the Board, replacing Hank Vander Laan, who remains on the board.