Hamilton Thorne (TSV-V: HTL) $3M Private Placement
Hamilton Thorne Ltd. (TSX-V: HTL) is proposing to issue a private placement of an aggregate of approximately 12M common shares at CDN$0.25 per common share, for gross proceeds of up to approximately US$3M.
- TSV-V: HTL anticipates that up to approximately 9.6M common shares representing gross proceeds of up to approximately US$2.4M will be issued to insiders of HTL;
- TSV-V: HTL will be offering the holders of its convertible subordinated debentures issued in 8/10 and 3/11, the right to convert, subject to receipt of all applicable TSX-V approvals, the principal amount of such debentures, including all accrued interest, into common shares, at the conversion price specified in such debentures, in advance of the maturity date of such debentures. At this date, the holders of approximately CDN$1.3M of outstanding debentures have indicated their intention to convert such debentures and accrued interest into approximately 7.1M common shares;
- Each such holder is also an insider of the HTL. If all remaining debenture holders convert their debentures and accrued interest, HTL expects to issue up to approximately 2.8M additional common shares;
- TSV-V: HTL intends to use US$1.5M of the net proceeds of these transactions to reduce the amount outstanding on the bank line of credit from US$5M to US$3.5M. The balance will be used to fund R&D, and to provide working capital.
The Bottom Line: Coupled with early conversion of subordinated debentures, new funding to improve balance sheet and provide additional working capital for product development. HTL provides novel solutions that reduce cost, increase productivity as much as 10 fold, and enable research breakthroughs in regenerative medicine, stem cell research and fertility markets. The new LYKOS(TM), Staccato(TM) and Stiletto(TM) laser systems offer significant scientific advantages in the fields of developmental biology, cancer research and advanced cell biology. HTL’s laser products attach to standard inverted microscopes and operate as robotic micro-surgeons, enabling a wide array of scientific applications and procedures. HTL’s growing customer base includes pharmaceutical companies, biotechnology companies, fertility clinics, university research centers, and other commercial and academic research establishments worldwide. Current customers include research labs such as Harvard University, MIT, Yale, McGill University, DuPont, Monsanto, Charles River Labs, Jackson Labs, Merck, Novartis, Pfizer, Oxford University, and Cambridge. Got to love the structure , only in Canada, but spent in US.
