The Company plans to use the net proceeds from the Placement for working capital purposes and strategic M&A activities.
Prad Sekar, Chief Executive Officer of CB2 stated “The significant upsizing of this placement from the original $3 million announced on September 3, 2020, is a tremendous vote of confidence in the company and our strategy. While organic growth remains one of the key legs in our three-pronged growth strategy, our existing infrastructure, management expertise and unique business model of technology overlay on traditional primary care services in the Unites States offers excellent potential for highly accretive acquisitions. We are confident that the proceeds of this placement will further accelerate our growth going forward.”
The Offering is considered a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI 61-101”) as Peter Cummins, a director of the Company, subscribed for 250,000 Units pursuant to the Offering. Such related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to the related party nor the consideration being paid by the related party exceeded 25% of the Company’s market capitalization. The participants in the Offering and the extent of such participation were not finalized until shortly prior to the completion of the Offering. Accordingly, it was not possible to publicly disclose details of the nature and extent of related party participation in the Offering pursuant to a material change report filed at least 21 days prior to the completion of the Offering.
All securities issued in connection with the Offering will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws.
The Company is issuing 102,877 shares to certain consultants and also announces that 2,485,134 previously issued stock options have been surrendered to the Company and cancelled.