VANCOUVER, British Columbia, Jan. 11, 2018 (GLOBE NEWSWIRE) -- Pacgen Life Science Corporation (“Pacgen” or the “Company”) (TSX-V:PBS) announced today that it has completed a non-brokered private placement of 12,300,000 units (“Units”) at a subscription price of $0.06 per Unit for gross proceeds of $738,000. Proceeds from the private placement will be used for business development and general corporate purposes. The TSX Venture Exchange has conditionally approved the private placement, subject to satisfaction of customary requirements.
Each Unit consists of one common share of Pacgen and one common share purchase warrant. Each warrant will entitle the holder thereof to acquire one additional common share at a price of $0.06 for a period of two years from the closing date. All Units issued pursuant to the private placement are subject to a four-month hold period following closing.
As members of Pacgen’s Board of Directors directly or indirectly subscribed for $293,000 of the Units offered under the private placement, the issuance of the Units is considered a related party transaction subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). Pacgen relied on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that the fair market value of the Units issued to insiders does not exceed 25% of the fair market value of Pacgen’s market capitalization.
Pacgen also announced that Dr. Rakesh Arya has been appointed to its Board of Directors. Dr. Arya brings to Pacgen over twenty-five years of business management experience gained primarily in the dentistry field. As a dentist and an entrepreneur, he has built a keen interest in business development, innovation, and management. Dr. Arya currently serves as the principal of a high-tech dentistry clinic based in Canada. Coming from a family of medical professionals, Dr. Arya has practiced dentistry since 1990 and served in the communities of different countries before setting down in Canada. He is well connected to medical and pharmacy professions in North America and South-East Asia. Dr. Arya holds a Dentistry Degree from University of Toronto, Canada, a Master Degree in Hospital Management from Chennai University, India, and a Master Degree in Dentistry (Orthodontics) from Government Dental College and Hospital, India.
Dr. Arya subscribed for 5,000,000 of the Units issued in the private placement. Following completion of the private placement, Dr. Arya owns 5,000,000 common shares, representing 7.71% of the Company’s issued and outstanding common shares, and 5,000,000 common share purchase warrants. If these warrants are exercised, and assuming no other warrant holders or option holders exercise their securities, Dr. Arya will hold 14.32% of the Company’s common shares.
Christina Yip, a director and officer of the Company, subscribed for 2,475,000 of the Units issued in the private placement. Following completion of the private placement, Ms. Yip owns 7,144,821 common shares, representing 11.02% of the Company’s issued and outstanding common shares, 3,125,000 common share purchase warrants, and 775,000 incentive stock options. If all of her warrants and options are exercised, and assuming no other warrant holders or option holders exercise their securities, Ms. Yip will hold 16.07% of the Company’s common shares.
About Pacgen
Pacgen is a life sciences company focused on building a global commercial platform to market innovative consumer health products developed by SMEs in North America. Currently, the Company has marketing rights to four distinctive brands with over seventy different products in two reportable market segments, including oral care and skin care. These products marketed under the tradenames of P113+™, DermaMed™, DermaSoleil™ and Deserving Health™ have reached markets in Asia and North America. For additional information, please visit www.pacgenlife.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward looking Statements
Certain statements included in this press release may be considered forward-looking. Pacgen disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For all forward-looking statements, Pacgen claims the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
For further information, please contact:
Christina Yip
President and Chief Financial Officer
Tel: 778-389-4323
Email: christina.yip@pacgenlife.com