Covalon Tech today announced an upcoming $2.6 million offering, with $1.8 million from a non-brokered private placement and $775,000 from the exercise of currently outstanding warrants.
In the offering, the Mississauga, Canada-based company will offer approximately 931,121 units at $1.96 per share, looking to raise gross proceeds of $1.8 million. Each unit offered is comprised of 1 common share and 1 warrant for a common share, exercisable at $2.30 per share for 3 years from the closing date.
Covalon said that insiders are expected to participate for an aggregate of 752,551 units for gross proceeds of $1.5 million, according to a press release.
Last August, Covalon said it won a $7.6 million 12-month supply contract with the Ministry of Health facilities in Saudi Arabia to supply the country with its ColActive Plus and ColActive Plus Ag wound care dressings.
The company said the contract was won after a “highly competitive bidding process” that selected Covalon as its exclusive advanced collagen wound dressing supplier.
