Prometic Life Sciences Inc. (TSX: PLI; OTCQX: PFSCF) has closed previously announced US $80 million or CDN $100 million line of credit financing with Structured Alpha LP (SALP), an affiliate of Peter J. Thomson’s investment firm, Thomvest Asset Management Inc.
As partial consideration for establishing the credit facility, Prometic has granted Structured Alpha LP an initial 10 million warrants with an exercise price of CDN $1.70 per common share with a term expiring June 30, 2026, alongside an additional 44 million warrants at the same exercise price and term, which will vest in tranches each time Prometic draws an additional amount of US $10 million (CAD $12.5 million) under the credit facility. Drawing on the first 4 tranches of US $10 million (CDN $12.5 million) would each cause 5 million warrants to vest, whereas the drawing on the second set of 4 tranches of US $10 million (CDN $12.5 million) would each cause 6 million warrants to vest. Any amount drawn from the credit facility will bear interest of 8.5% per annum and the principal will be repayable on November 30, 2019.
Structured Alpha LP and affiliate now holds over $172 million in loans and warrants in Prometic. Stefan Clulow, Managing Director and Chief Investment Officer of Thomvest Asset Management Inc., served as SALP nominee on Prometic board pursuant to the loan agreements.
Following Structured Alpha LP’s acquisition of the new warrants, Thomvest beneficially owns, or exercises control or direction over, warrants to acquire an aggregate of 121,394,189 common shares, together with 24,071,775 common shares. If all of the warrants that it holds were exercised, Thomvest would beneficially own, or exercise control or direction over, directly and indirectly, an aggregate of 145,465,964 common shares, or approximately 17.49% of the outstanding common shares on a partially diluted basis, representing an increase in its beneficial ownership or control of common shares of 5.73%.
photo credit: Prometic Life Sciences Inc.