COSCIENS raises $12M in convertible debentures to fund Nualtis deal

What's the deal? COSCIENS BiopharmaDealroom has a profile for this one. Try Dealroom → has issued roughly $12 million of 15% unsecured convertible debentures in an ongoing private placement, part of a target of up to $20 million. The Toronto-listed holding company, traded as CSCI on the TSX and CSCIF on the OTCQB, plans to keep marketing the debentures through mid-November unless the maximum is reached first.

Why now? The financing follows COSCIENS' September acquisition of Nualtis, a specialty-pharma technology business. Proceeds raised so far, plus existing cash, already cover the remaining $6 million deferred payment due to AtaiBeckley in March 2027.

What's the endgame? COSCIENS operates through two subsidiaries: Ceapro, which makes plant-based active ingredients from oats, and Nualtis, focused on oral thin-film drug delivery. If the full $20 million is raised and shareholders approve converting the debentures into shares at a meeting expected in December, the company estimates a pro forma market capitalisation near $27 million and over $7 million in cash with no debt.

What could go wrong? The terms are costly. The debentures carry 15% annual interest and may convert at $7 a share — subject to shareholder approval — which would dilute existing holders.

The signal: The round sits in the smallest fifth of deals by size, placing it well below the typical venture raise. For COSCIENS, it is less a growth play than a bid to clear an acquisition bill and shore up its balance sheet, at a high coupon.

Read more: stockwatch.com

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