CardioComm Solutions Inc (CVE:EKG) has closed its previously reported equity financing for total gross proceeds of $76,000. This deal was planned to permit parties who failed to participate in the firm’s December 2016 private placement to capitalize in the firm. The financing proceeds will be used for regulatory submissions, working capital and general operations.
Under the financing, CardioComm released 1.52 million units priced $0.05 per unit. Each of this unit is comprised of one purchase warrant and a common share. Warrant can be exercised for an additional equity at $0.075 for 2-years. The securities released under the financing are conditional to a 4-month hold period.
Etienne Grima, the CEO of CardioComm, has privately sold 1.1 million shares and has utilized the revenue from the sales to buy 1.1 million units under the financing. The unit issuance to Mr. Grima is stated to be a related party transaction. The firm plans to rely on exemptions from the official valuation and minority shareholder nod requirements offered under sections 5.7(a) and 5.5(a) of Multilateral Instrument 61-101 on the base that the value of the issued units to Mr. Grima does not surpass 25% of the fair market value of the firm’s market capitalization.
CardioComm proprietary and patented technology is used in items for recording, viewing, storing and analyzing electrocardiograms for management and diagnosis of cardiac patients. Offerings are sold globally via combination of an external supply network and a North American-based strong sales team.
The firm has earned the ‘ISO 13485’ certification, is HIPAA compliant, HPB approved and has obtained FDA market nod for its software devices. It is headquartered in Toronto, Canada.
In the last trading session, the stock price of CardioComm declined over 5% to close the day at $0.0800. After the recent decline, the market cap of firm stands at $9.98 million.