Medifocus, Inc. Announces $2 Million Second Tranche Closing of $6 Million Convertible Debenture Financing
11 March 2014 - 11:57PM
Marketwired
Medifocus, Inc. Announces $2 Million Second Tranche Closing of $6
Million Convertible Debenture Financing
COLUMBIA, MD and TORONTO, ON--(Marketwired - Mar 11, 2014) -
Medifocus, Inc. (OTCQX: MDFZF) (TSX-VENTURE: MFS) announced today
the closing of the second tranche of $2 million of its previously
announced $6 million convertible debenture financing. The first
tranche of $3,540,000 was completed on December 18, 2013.
The current financing consists of 200 units at a price of
$10,000 per unit (the Units). Each Unit consists of (i) a $10,000
redeemable promissory note ("Note"), bearing 8% annual interest
payable on a quarterly basis, which are convertible into Common
Shares at a conversion price of $0.25 per Common Share, and which
are payable 36 months after the closing of the Offering; and (ii)
Common Share purchase Warrants ("Series C Warrants") to purchase
20,000 common shares at a price of $0.30 per share for a period of
36 months following the completion of the Offering. Any securities
issued under the second tranche of the Offering are subject to a
hold period until July 7, 2014.
If, at any time after the date that is 12 months following the
closing of the Offering, the daily volume weighted average trading
price of the Common Shares on the TSX Venture Exchange or the OTCQX
in the United States exceeds $0.50 (or its equivalent in U.S.
dollars) for at least 20 consecutive trading days, Medifocus may at
its sole discretion, within 30 days of such occurrence, provide a
redemption notice to the holders of Notes and, if it does so,
Medifocus will redeem Notes by paying the holders thereof the
principal amount of such Notes plus any accrued but unpaid interest
on the 30th day after the redemption notice is given.
If, at any time after the date that is 12 months following the
closing of the Offering, the daily volume weighted average trading
price of the common shares on the TSX Venture Exchange or the OTCQX
in the United States exceeds $0.60 (or its equivalent in U.S.
dollars) for at least 20 consecutive trading days, Medifocus may,
within 30 days of such occurrence, provide an expiry acceleration
notice to the holders of Series C Warrants and, if it does so, the
Series C Warrants will, unless exercised, expire on the 30th day
after the acceleration notice is given.
Medifocus will pay finder's fees of $161,100 in cash and issue
644,400 finder's Warrants in respect of the financing. Each
finder's Warrant will entitle the holder to purchase one additional
Common Share at a price of $0.30 per Common Share for a period of
36 months following the completion of the Offering.
The net proceeds of the Offering will be used to accelerate the
commercialization of the Prolieve® technology and for working
capital.
Dr. Augustine Y. Cheung, President and CEO, stated, "We are
extremely pleased to have raised $5.5 million of our $6 million
private placement. This capital injection will allow us to move
forward with our plans for the growth of our Prolieve® business. We
have surpassed our goals by increasing Prolieve® user sites from 61
in July 2012, when we first purchased the Prolieve® business, to
over 240 today. With the excellent safety and efficacy profile of
our Prolieve® treatment, we expect continued growth in both revenue
and user sites in 2014 and the further strengthening of our
position in the market place."
About Medifocus, Inc.
Medifocus owns two fully developed technology platforms with
comprehensive United States and international patent protection:
(i) The Endo-thermotherapy Platform-a catheter-basis focused heat
technology platform that utilizes natural body openings to deliver
precise microwave thermotherapy to the diseased sites. The United
States Food and Drugs Administration (FDA) approved Prolieve
Thermodilatation System for the treatment of Benign Prostatic
Hyperplasia (BPH) was developed based on the Endo-thermotherapy and
is currently generating revenue; and (ii) the Adaptive Phased Array
(APA) Microwave Focusing Platform, invented by the Massachusetts
Institute of Technology, licensed to Medifocus directs precisely
focused microwave energy at tumor center to induce shrinkage or
eradication of tumors without undue harm to surrounding tissue.
Medifocus' APA 1000 Breast Cancer Treatment System, developed from
the APA technology platform, has received approval from the FDA and
Health Canada to conduct the pivotal Phase III clinical trials.
Medifocus believes that these two technology platforms can provide
the design basis for the development of multiple cancer treatment
systems for surface, subsurface and deep seated localized and
regional cancers. Please visit www.medifocusinc.com,
www.prolieve.com and
http://www.facebook.com/pages/Medifocus-Inc-Company-Page/546315028715627
for more details.
Forward-Looking Statements and Information
This news release contains "forward-looking statements" and
"forward-looking information," which may not be based on historical
facts. Forward-looking statements and forward-looking information,
include, but are not limited to, information and statements with
respect the structure and the proceeds of the Offering and the
expected use of the proceeds. Forward-looking statements are
frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate," "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made. Such forward-looking statements and forward-looking
information involve known and unknown risks, uncertainties and
other factors that may cause the actual results events or
developments to be materially different from any future results,
events or developments expressed or implied by such forward-looking
statements or forward-looking information. These factors should be
considered carefully and readers are cautioned not to place undue
reliance on such forward-looking statements and forward-looking
information. Except as required by applicable securities laws,
Medifocus disclaims any obligation to update any such factors or to
publicly announce the results of any revisions to any of the
forward-looking statements or forward-looking information contained
herein to reflect future results, events or developments.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Medifocus Contact: John Mon COO Medifocus, Inc. Tel:
410-290-5734 JohnMon@medifocusinc.com Investor Relations Contact:
Robert Giordano Consulting for Strategic Growth 1 T: 917-327-3938
rgiordanonyc@gmail.com
Medifocus (TSXV:MFS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Medifocus (TSXV:MFS)
Historical Stock Chart
From Jul 2023 to Jul 2024