VentriPoint Diagnostics (CVE:VPT) shares shot up by a fifth on Wednesday after the company said it is increasing the maximum gross proceeds of its non-brokered private placement to C$3.2mln from C$2mln and will now issue up to 10 million units at 32 cents per unit.
Each unit consists of one common share of Ventripoint and one common share warrant. Each warrant will entitle the holder thereof to acquire one common share at a price of 50 cents per common share for a period of two years after the issuance of the warrant.
The corporation is also announcing the private placement is oversubscribed and no further orders will be accepted. The corporation expects to close the private placement on or before March 21, 2017.
The corporation also announces that it has expressions of interest to enter into agreements with holders of debentures previously issued by the corporation to issue an additional 1,915,625 units to the holders of the debentures as payment in full of $613,000, being the aggregate of all amounts due under the debentures, as a share-for-debt transaction. Should all debenture holders complete the transactions, the corporation would be debt free. One insider of the corporation, Dr. George Adams, would be issued 312,500 units for his $100,000 debenture.
VentriPoint shares were up 18% at C$0.46 on Wednesday.