OTTAWA, ON, Aug. 11, 2022 /PRNewswire/ – Tetra Bio-Pharma Inc. (“Tetra” or the “Company“) (TSX:TBP) (OTCQB:TBPMF) (FRA: JAM1), a leader in cannabinoid-based drug discovery and development, announced today that it has entered into a subscription agreement (the “Subscription Agreement“) with Global Corporate Finance Opportunities 16 (the “Investor“), an investment vehicle advised by Alpha Blue Ocean Inc. (“ABO“), whereby Tetra has agreed to issue to the Investor (i) senior unsecured convertible debentures (“Debentures“) in the aggregate principal amount of up to $6,000,000and (ii) warrants (“Warrants“) to purchase common shares (“Common Shares“) in the capital of the Company (collectively, the “Offering“).
Created in 2017, ABO is a pioneer in alternative financings, providing innovative financing solutions for companies across the globe. In less than 5 years, ABO, founded by Pierre Vannineuse, has executed more than €1.5 billion in financial commitments and more than 90 transactions , with a high focus on the life science sector.
“The Company is pleased to announce our financing agreement with Alpha Blue Ocean,” says Guy ChamberlandCEO of Tetra. “This agreement gives us capital to fund our operations and further pursue the development of our drug candidates”.
“We are excited to partner with Tetra, a leader in cannabinoid-based drug discovery and development,” says Amine Nedjai, CEO of ABO. “This financing agreement, ABO’s first on the TSX, will provide funds for the Tetra team to accelerate its drug development pipeline.”
The Investor has agreed to subscribe for up to $6,000,000 principal amount of Debentures and accompanying Warrants. The Debentures will be convertible into, and the Warrants will be exercisable for, Common Shares, at prices to be determined at each closing of the 15 separate tranches (each, a “Tranche“) pursuant to which the Debentures and accompanying Warrants are issuable.
Upon closing of each Tranche, the Company will issue the Debentures in the principal amount of $400,000.
The subscription price for each Debenture is 100% of its face value and the Debentures will not bear interest. Each Debenture matures 12 months following the applicable issue date (the “Maturity Date“).
The Debentures will be automatically converted into such number of Common …