ChroMedX Corp. Closes Oversubscribed Private Placement
September 22, 2014
ChroMedX Corp. (the “Company”) (CSE: CHX) is pleased to announce that it has completed its previously announced non-brokered private placement (the “Offering”) for gross proceeds of CDN$614,500 through the issuance of 6,145,000 units (each a “Unit”) at a price of CDN$0.10 per Unit. As a result of the Offering being oversubscribed, the board of directors increased the private placement offering from CDN$500,000 to CDN$650,000. Each Unit is 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 $0.25 for a period of eighteen (18) months from the closing date.
In connection with the Offering, the Company has paid an aggregate of $10,000 in cash commissions and has issued 100,000 broker warrants (“Broker Warrants”) to certain parties for introducing purchasers to the Company. Each Broker Warrant entitles the holder thereof to purchase one Common Share at a price of CDN$0.10 for a period of 18 months from the closing date.
The securities issued in connection with the Offering will have a four month and one day hold period pursuant to applicable securities laws.
Use of Proceeds
Proceeds will be used to continue the prototype development of the Company’s HemoPalmTM blood analysis system.
HemoPalmTM is a blood analysis system consisting of a handheld analyser and a suite of disposable single use cartridges. It provides a complete assessment of blood oxygenation and acid-base status replacing the blood analysis currently done in central laboratories with bench top units. The HemoPalm uses a combination of spectroscopy (light analysis) and electrochemical measurements similar to those used by bench top units thereby providing the same analytical capabilities. In addition, the blood sample collection may optionally be taken from a finger prick as an alternative to an arterial sample taken with a syringe, which makes the technology applicable in markets outside of a clinical setting.
ChroMedX Corp. has retained Trapeze Capital Corp. to provide market-making services in accordance with Canadian Securities Exchange (“CSE“) policies. Under the terms of the agreement between the Company and Trapeze dated September 22, 2014 (the “Agreement“), Trapeze will receive compensation of $5,000 per month plus HST and will not receive any Common Shares or options of the Company as compensation. However, Trapeze and its clients may have or may acquire a direct interest in the securities of the Company. ChroMedX and Trapeze are unrelated and unaffiliated entities; Trapeze is a member of the Investment Industry Regulatory Organization of Canada, a participating organization of TSX and a member of TSX.V. The capital and securities required for any trade undertaken by Trapeze as principal will be provided by Trapeze. The Agreement is for a term of 6 months.
About ChroMedX Corp.
ChroMedX Corp. is a medical technology 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.
The Company previously operated as Monarch Energy Ltd. before the formal name change on September 18, 2014 to ChroMedX Corp.
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President, CEO & Director
W. Clark Kent
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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
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