ChroMedX Announces Private Placement of Units
July 7, 2015
ChroMedX Corp. (CSE: CHX) (the "Company" or "ChroMedX") would like to announce that it intends to complete a non-brokered private placement (the "Offering") for gross proceeds of up to CDN$1,200,000 through the issuance of up to 9,600,000 units (each a "Unit") at a price of CDN$0.125 per Unit. Each Unit will be comprised of one common share of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"), each Warrant entitling the holder thereof to acquire one Common Share at a price of $0.20 for a period of eighteen (18) months from the closing date.
In connection with the Offering, the Company will also pay a cash commission equal to 8% of the gross proceeds and issue broker warrants ("Broker Warrants") equal to 8% of the Units sold to certain parties for introducing purchasers to the Company. Each Broker Warrant will entitle the holder thereof to purchase one Common Share at a price of CDN$0.20 for a period of eighteen (18) months from the closing date.
The Company will use the net proceeds from the sale of the Units for developing prototypes, marketing and general working capital purposes.
The Common Shares, Warrants and Broker Warrants will be subject to a four month hold period commencing from the date of issuance.
ChroMedX is an early stage company focused on the development of novel medical devices for in vitro diagnostics and point-of-care testing. The devices are protected by the Company's issued US and pending international patents, dealing with blood collection, analysis and plasma/serum processing. Application of the devices is extended to address special requirements for neonatal care.
Forward-looking Information Cautionary Statement
Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CSE. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's filings with Canadian securities regulators, which filings are available at www.sedar.com.