Valeo Pharma Inc. (CNSX:VPH) announced a non-brokered private placement of up to 1,000 unsecured non-convertible debenture units at a price of CAD 1,000 per debenture unit for maximum gross proceeds of CAD 1,000,000 in June 2020. Each debenture unit will consist of one 12% unsecured non-convertible debenture of the company in the principal amount of CAD 1,000 with a maturity date of 24 months following the closing date and 1,500 class A share purchase warrants. Each warrant entitles the holder to purchase one class A share of the company at an exercise price of CAD 0.60 at any time up to 24 months following the closing date, subject to an acceleration clause that if, in the event the average volume weighted average trading price of the common shares is greater than or equal to CAD 1.10 per common share for each of the preceding 20 consecutive trading days, the company may give notice to the warrant holder that it must exercise its remaining warrants within a period of 30-days from the date of receipt of the notice, failing which the warrants will automatically expire.

Closing of the transaction is expected to occur on or about July 10, 2020 and is subject to regulatory approval including that of the Canadian Stock Exchange.