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ChitogenX Inc (OTCMKTS:CHNXF) Stock Falls After Private Placement Offering

Ian Leigh , , , ,

Clinical stage regenerative medicine company ChitogenX Inc (OTCMKTS:CHNXF) was one of the companies which had made a significant new announcement yesterday and that could bring the stock into focus among investors. The company announced that it closed the second tranche of its non-brokered private placement that it had previously announce and managed to raise $288000.

Trading Data

On Monday, CHNXF stock lost 15.76% to $0.1035 with more than 750 shares, compared to volume of 388 shares. The stock moved within a range of $0.1035 – 0.1035 after opening trade at $0.1035.

Chitogenx Closes $288,000 Second Tranche Of Non-Brokered Private Placement Offering

The second tranche of the offering was made up of $247141 in debt conversions and $41250 in cash proceeds. The debt conversions were with debt holders who held convertible debentures in the company that had matured on May 1, 2023. One of the company insiders converted unpaid and accrued interest on debenture holders for $107250.

ChitogenX issued a total of 1922608 units for the price of $0.15 each for gross proceeds of $288391.40. Each unit was made up of a class A share in the company and a share purchase warrant. The holder of a warrant would be entitled to pick up a share in the company for the price of $0.35 for up to 36 months since the date of issuance. It should be noted that the securities offered in the placement would be subject to a hold period of four months and a day.

Ian Leigh

Ian Leigh is a specialist in analyzing stocks, SEC and OTC filings, and financials of public and privately-held companies. He has played a significant role in M&A activity, consulting with publicly-held firms on acquisitions and divestitures. He also consults on valuations and branding. He lectures at major universities and teaches at specialty financial schools.