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Rakovina Therapeutics Announces the Closing of Oversubscribed Private Placement of $4.9 Million
GlobeNewswire·2025-06-06 20:07

Core Viewpoint - Rakovina Therapeutics Inc. has successfully closed a non-brokered private placement, raising gross proceeds of 4,905,150tosupportitsinnovativecancertherapiesandAI−drivendrugdiscoveryinitiatives[1][7].PrivatePlacementDetails−Theprivateplacementincludes4,905,150 to support its innovative cancer therapies and AI-driven drug discovery initiatives [1][7]. Private Placement Details - The private placement includes 3,555,150 from equity units (Units) and 1,350,000fromconvertibledebentureunits(DebentureUnits)[1][2].−EachUnitispricedat1,350,000 from convertible debenture units (Debenture Units) [1][2]. - Each Unit is priced at 0.05 and consists of one common share and one warrant, allowing the purchase of an additional common share at 0.10for24months[2].−EachDebentureUnitcomprisesa0.10 for 24 months [2]. - Each Debenture Unit comprises a 50,000 unsecured convertible debenture and 100,000 warrants, with the warrants allowing the purchase of a common share at 0.15for24months[3].FinancialTerms−Thedebentureswillaccrueinterestat120.15 for 24 months [3]. Financial Terms - The debentures will accrue interest at 12% per annum and are repayable in 36 months, with an option for conversion into common shares at 0.10 [3]. - The company paid cash finder's fees totaling 60,035.50andissued1,200,710finder′swarrants,eachallowingthepurchaseofacommonshareat60,035.50 and issued 1,200,710 finder's warrants, each allowing the purchase of a common share at 0.10 for 24 months [4]. Insider Participation - Insiders subscribed for 14,700,000 Units, generating 735,000ingrossproceeds,whichisconsideredarelatedpartytransaction[5].−ThecompanyisrelyingonexemptionsfromformalvaluationandminorityshareholderapprovalrequirementsunderMI61−101[5].ShareConsolidation−A10−for−1shareconsolidationisplannedfollowingtheprivateplacement,withallamountspresentedonapre−consolidationbasis[6].UseofProceeds−ProceedsfromthefinancingwillsupporttheintegrationofAI−drivendrugdiscoverytoolsandenhancevisibilityamonginstitutionalinvestorsinU.S.andglobalcapitalmarkets[7][8].InvestorRelationsandMarketing−RakovinahasengagedFairfaxPartnersasitsInvestorRelationspartnerandMachaiCapitalforcorporatecommunicationservices[9].−Fairfaxwillimplementathree−monthIRprogramwithabudgetof735,000 in gross proceeds, which is considered a related party transaction [5]. - The company is relying on exemptions from formal valuation and minority shareholder approval requirements under MI 61-101 [5]. Share Consolidation - A 10-for-1 share consolidation is planned following the private placement, with all amounts presented on a pre-consolidation basis [6]. Use of Proceeds - Proceeds from the financing will support the integration of AI-driven drug discovery tools and enhance visibility among institutional investors in U.S. and global capital markets [7][8]. Investor Relations and Marketing - Rakovina has engaged Fairfax Partners as its Investor Relations partner and Machai Capital for corporate communication services [9]. - Fairfax will implement a three-month IR program with a budget of 250,000, focusing on online marketing and social media [10]. - Machai Capital will enhance marketing campaigns with a budget of $250,000, utilizing various digital marketing strategies [11]. Company Overview - Rakovina Therapeutics is focused on developing innovative cancer treatments using AI technologies for targeting DNA-damage response [13]. - The company aims to advance drug candidates into human clinical trials in collaboration with pharmaceutical partners [14].