Profound Medical (TSXV:PRN) has entered into an agreement with a syndicate of underwriters, led by Canaccord Genuity, to sell on a bought deal basis a total of 30 million units at a price of $1 each for gross proceeds of $30-million.
The company originally had planned to sell 20 million units at the same offering price.
Each unit consists of one common share and one-half of a warrant of Profound. Each warrant can be exercised to acquire an additional common share at a price of $1.40 for a period of five years following closing. Under certain circumstances, the company can accelerate the expiry of the warrants.
Profound also granted underwriters an over-allotment option to purchase up to an additional 4.5 million units at the offering price for a period of 30 days after closing, which, if exercised in full, would raise gross proceeds to $34.5-million. Closing is set for March 20.