COSCIENS raises $4.4M in second tranche of convertible debenture offering

What's the deal? COSCIENS BiopharmaDealroom has a profile for this one. Try Dealroom → has closed the second tranche of a non-brokered private placement of 15% unsecured convertible debentures, raising US$4,375,000. Together with the first closing, the Toronto-based company has now raised US$10,706,250 under the offering.

What's the endgame? The offering contemplates issuing debentures up to US$20 million. COSCIENS said it expects to close one or more additional tranches in the coming weeks, though completion depends on customary closing conditions.

COSCIENS is a holding company operating through its subsidiaries Ceapro, which develops plant-based active ingredients from oats and other renewable resources, and NualtisDealroom has a profile for this one. Try Dealroom →, a specialty pharmaceutical technology business focused on oral thin-film drug delivery.

Why now? The conversion rights and certain related terms of the debentures require shareholder approval under Toronto Stock Exchange rules. COSCIENS has agreed to call a shareholder meeting within six months to seek the necessary approvals.

The fine print: The company agreed to pay finders' fees on certain subscriptions, totalling US$35,000 in debentures and US$100,000 in cash for the second tranche. The debentures and any shares issued on conversion are subject to a four-month hold period under Canadian securities laws.

The signal: At roughly $4.4 million, the tranche sits near the smaller end of financings, landing in the 14th percentile by size. For a small-cap holding company, the staged debenture structure offers a path to raise capital incrementally while it works towards shareholder sign-off on conversion terms.

Read more: Business Insider

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