Voyageur Pharmaceuticals Ltd. (TSX-V: VM) has announced the closing of its non-brokered private placement, raising aggregate gross proceeds of $5,005,278.32. The offering, which was conducted under the Listed Issuer Financing Exemption (LIFE Exemption), consisted of 30,935,000 units at $0.10 per unit and 15,931,486 flow-through units at $0.12 per FT unit. Each unit includes one common share and one warrant, with each warrant exercisable at $0.20 for 36 months. The FT units contain a warrant with the same terms. The company paid cash commissions and issued broker warrants to eligible finders in connection with the offering.
The net proceeds will be directed toward 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. Voyageur is a Canadian developer of pharmaceutical-grade barium and iodine for medical imaging contrast media, aiming to become the first vertically integrated company in the radiology contrast media drug market. The company owns a 100% interest in the Frances Creek barium sulfate (barite) project in Canada, which it believes can replace synthetic barium with higher quality, lower cost imaging products.
Insiders subscribed for 900,000 units, representing 1.92% of the securities issued, increasing their non-diluted ownership to 0.41%. The participation by insiders constitutes a related party transaction under MI 61-101, but the company is exempt from formal valuation and minority shareholder approval requirements as the transaction's fair market value does not exceed 25% of the company's market capitalization. The offering was unanimously approved by the board, excluding participating directors.
The securities issued under the LIFE Exemption are not subject to a hold period under Canadian securities laws but may be subject to TSXV requirements. The offering remains subject to final acceptance by the TSX Venture Exchange. The company did not file a material change report more than 21 days before closing due to the late settlement of related party participation details. Voyageur's business plan includes partnering with third-party GMP manufacturers to generate cash flow and eventually transitioning into a domestic manufacturer of radiology drugs. For more information, the offering document is available on SEDAR+ and the company's website at https://voyageurpharmaceuticals.ca.
