Portage announced the closing of its non-brokered private placement. The generated proceeds will go towards upgrading the firm’s pipeline, with the expectation of three clinical programs by year-end.
Two of the Company’s directors, Dr. Gregory Bailey and Mr. James Mellon, provided standby commitments in respect of the Offering by purchasing an aggregate of 200,000 Common Shares (US$2,000,000).
Portage Biotech Inc. intends to use the funds to:
- Accelerate the progress and execution of their pipeline
- The gain in momentum will shorten the time it takes for the firm to transition into its commercialization phase.
- The firm will begin to generate significant and stable revenue, providing investors with confidence and value.
- Pursue value-creation opportunities
- Opportunities can include (among many options), pursuing research into novel breakthrough therapies or using the proceeds to pay off debt, all of which will have a net positive effect on investor’s value.
The allocation of funds, as mentioned above, will prove strategic in the long run. The funds may provide the firm with the stimulus to get through critical clinical milestones, making any dilution experienced today negligible.
Private placements also have the added advantage of increasing the company’s institutional investments, which is beneficial in advising the company through key corporate decisions.
The firm also announced it expects to have three additional therapies in clinical trials before the year-end. The company is indeed demonstrating perseverance and resiliency, despite the ongoing COVID-19 disturbances.
May 25th – Portage Biotech Inc. announces a non-broker private placement. It results in a gradual 35.71% price drop, from $14.00 to a bottom of $9.00. Investors anticipated this price drop, with many leaving due to dilution concerns. The price proceeds to re-stabilize between the $12-10.5 range.
June 16th – Portage Biotech Inc. announces the closure of the non-broker private placement. The share price declined following the announcement due to the missed target of $10,000,000 for the private placement and general market conditions.
As of June 30th – the share price has returned to its June 16th price level of $11.00, a signal of investor confidence and the firm’s inherent value, despite concerns of dilution.
The use of the proceeds generated by this placement includes the pipeline and other value-enhancing opportunities, proving beneficial to investors in the long run.
Portage Raises More Than US$6.7 Million Through Non-Brokered Private Placement; Temporary Symbol Change on OTC Markets
TORONTO, June 16, 2020 /PRNewswire/ – Portage Biotech Inc. (CSE: PBT.U) (OTC Markets: PTGEF) (“Portage” or the “Company”) is very pleased to announce that, further to its news release dated May 25, 2020, it has closed a non-brokered private placement (the “Offering”) for gross proceeds of US$6,788,600 through the issuance of 678,860 common shares (the “Common Shares”) at a price of US$10.00 per Common Share.
Two of the Company’s directors, Dr. Gregory Bailey and Mr. James Mellon, provided standby commitments in respect of the Offering by subscribing for an aggregate of 200,000 Common Shares (US$2,000,000). The issuance of the Common Shares to Messrs. Bailey and Mellon are considered related party transactions within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on appropriate exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 in respect of their purchases.
Dr. Walters, CEO of Portage commented, “the Company’s pipeline is progressing nicely and we are on target to have 3 products in clinical testing by the end of this year despite COVID interruptions. In addition, our early pipeline companies continue to achieve their developmental milestones, and this financing will allow us to accelerate our programs, as well as to be able to take advantage of new value-creating opportunities.”
In connection with the Offering, the Company has paid cash finder’s fees on the non-insider portion of the Offering of approximately US$193,000.
All Common Shares issued in connection with the Offering are subject to a minimum statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. The Common Shares issued in connection with the Offering have not been registered under the U.S. Securities Act of 1933, as amended (the “Act”), and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.
Portage will also like to advise that OTC Markets in the United States has assigned a temporary trading symbol, “PTGED”, to the Company’s shares to reflect a recently completed share consolidation (reverse split) (see the Company’s news release dated June 3, 2020) and will automatically revert back to “PTGEF” after 20 trading days. Trading in Canada on CSE remains unchanged under the symbol “PBT.U”.