Mississauga, Ontario-based Covalon initially priced the offering at about $6.3 million, but re-priced it to approximately $5.5 million earlier this month to reflect the market for its stock.
The revised offering, of nearly 2.8 million units (one share and one warrant) at a price of $2.00 per unit. Initially the offering was slated for 2.5 million units at $2.51 apiece.
When Covalon announced the re-pricing earlier this month, the company said it expected substantial insider participation in the offering. Insiders ended up contributing nearly 2.2 million units for gross proceeds of almost $4.4 million in the offering, according to a news release.
Covalon said it intends to use the proceeds for working capital, expansion of international distribution, development and commercialization of new products and the repayment of debt.
COV.V shares were up 6.8% to C$2.04 today in early-afternoon trading.
($1 = C$1.32)