In the deal, the Mississauga, Ontario-based company said it will offer 20 million units at a price of $1 million per unit, for gross proceeds of $20 million.
Each unit in the round will consist of a single common share and one-half of a common share purchase warrant, with each warrant exercisable to acquire one common share of the company for five years past the closing date at a price of $1.40 per share.
Profound Medical said that if its common share price on the TSX Venture Exchange rises to greater than $2.80 for a period of 90 days, the company can accelerate the expiry date of the warrants to expire on the 20th day after the notice is given, 60 months from the closing date.
The offering also includes an underwriter’s over-allotment option to purchase an additional 3 million units at the offering price exercisable at any time on or prior to the date 30 days before the closing of the offering. The underwriter’s option could bring in an additioanl $3 million, according to a prepared statement.
Funds raised in the round are slated for supporting working capital and for general corporate purposes.
Last August, Profound Medical said it inked an $8 million “bought deal” financing with a pair of underwriters that it plans to use for its Tulsa-Pro and Sonalleve ablation devices.