Voyageur Pharmaceuticals Ltd. (TSX-V: VM) announced the closing of its non-brokered private placement, raising aggregate gross proceeds of C$5,005,278.32. The offering consisted of 30,935,000 units at C$0.10 per unit and 15,931,486 flow-through units at C$0.12 per FT unit. The company issued the securities under the Listed Issuer Financing Exemption, meaning the securities are not subject to a hold period under Canadian securities laws. Completion of the offering remains subject to final acceptance by the TSX Venture Exchange.
Each unit comprises one common share and one warrant, with each warrant exercisable at C$0.20 for 36 months. The FT units include one flow-through common share and one warrant. The company paid cash commissions of C$192,040 and issued 1,920,400 broker warrants for units, and C$145,802.25 with 1,215,019 broker warrants for FT units. The broker warrants are exercisable at C$0.10 and C$0.12 per share, respectively, for 12 months.
The net proceeds will be used for FDA licensing for Voyageur's barium contrast product suite, regulatory approvals for the Frances Creek bulk sample extraction, Frances Creek project exploration and feasibility work, U.S. iodine project development, and general corporate purposes. Voyageur aims to become a vertically integrated supplier of pharmaceutical-grade barium and iodine for medical imaging contrast media.
Insiders subscribed for 900,000 units, representing 1.92% of the securities issued. The participation is considered a related-party transaction but is exempt from formal valuation and minority shareholder approval under MI 61-101 as the fair market value does not exceed 25% of the company's market capitalization.
Voyageur owns a 100% interest in the Frances Creek barium sulfate project, which it believes can produce higher-quality, lower-cost imaging products compared to synthetic alternatives. The company's business plan includes partnering with third-party GMP manufacturers to generate cash flow before transitioning to domestic manufacturing.
