Voyageur Pharmaceuticals Ltd. (TSX-V: VM) announced the closing of a non-brokered private placement, raising gross proceeds of $5,005,278.32. The offering consisted of 30,935,000 units at $0.10 per unit and 15,931,486 flow-through units at $0.12 per unit, as detailed in the company's press release. Each unit comprises one common share and one warrant, with each warrant exercisable at $0.20 for 36 months. The flow-through units include a common share issued on a flow-through basis and one warrant. The warrants include an acceleration clause allowing the company to shorten the expiry if the share price reaches $0.40 for 10 consecutive trading days after six months.
The offering was conducted under the Listed Issuer Financing Exemption (LIFE Exemption), meaning the securities are not subject to a hold period under Canadian securities laws. The company paid finders' fees totaling $337,842.25 and issued 3,135,419 broker warrants. Insiders subscribed for 900,000 units, representing 1.92% of the securities issued, which is considered a related party transaction but exempt from formal valuation and minority approval requirements as it does not exceed 25% of the company's market capitalization.
Proceeds will be used for FDA licensing for Voyageur's barium contrast product suite, regulatory approvals for the Frances Creek bulk sample extraction, exploration and feasibility work at Frances Creek, U.S. iodine project development, and general corporate purposes. The company aims to become the first vertically integrated company in the radiology contrast media drug market, controlling raw material sourcing to final production. Voyageur owns a 100% interest in the Frances Creek barium sulfate project, which it believes can replace synthetic products with higher quality, lower cost imaging agents.
The company has developed five barium contrast products with Health Canada licenses and plans to partner with third-party GMP manufacturers to generate cash flow before transitioning to domestic manufacturing. The offering's completion is subject to final acceptance by the TSX Venture Exchange.
