Protech Home Medical

  • Simplifying the Patient Experience!

  • 859-300-6455

    cole.stevens@myphm.com

  • 1019 Town Drive

    Wilder, KY 41076

Protech Home Medical Announces $25 Million Bought Deal Offering


  •   5:00PM EST

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

CINCINNATI, OH, June 2, 2020 - Protech Home Medical Corp. (the "Company") (TSXV: PTQ) (OTCQX: PTQQF) is pleased to announce that it has entered into an agreement with a syndicate of underwriters  (the "Underwriters") co-led by Beacon Securities Limited ("Beacon"), as sole bookrunner, and Canaccord Genuity Corp. The Underwriters have agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 21,740,000 units (the "Units") at a price of $1.15 per Unit (the "Issue Price") for aggregate gross proceeds to the Company of $25,001,000 (the "Offering").

Each Unit shall consist of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant will be exercisable to acquire one Common Share for a period of 12 months following the closing of the Offering at an exercise price of $1.60 per share.

The Company has granted the Underwriters an option (the "Over-Allotment Option"), exercisable in whole or in part and from time to time, at any time until 30 days after the closing date of the Offering, to purchase up to an additional number of Units equal to 15% of the number of Units sold pursuant to the Offering at the Issue Price. The Over-Allotment Option is exercisable to acquire Units, Common Shares and/or Warrants (or any combination thereof) at the discretion of the Underwriters.

The Company intends to use the proceeds of the Offering for working capital and general corporate purposes. The Offering is expected to close on or about June 23, 2020 and is subject to certain closing conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.

The Units will be offered by way of a short form prospectus to be filed in British Columbia, Alberta and Ontario (and such other provinces as the Company and Beacon may agree), and may be offered in the United States to Qualified Institutional Buyers (as defined in Rule 144A under the United States Securities Act of 1933, as amended (the "1933 Act")) by way of private placement pursuant to an exemption from the registration requirements of the 1933 Act, or under other exemptions from the registration requirement that are available under the 1933 Act, and pursuant to any applicable securities laws of any state of the United States. The Units may also be sold in such other jurisdictions as the Company and Beacon may agree.

The securities referred to in this news release have not been, nor will they be, registered under the 1933 Act and may not be offered or sold within the United States or to, or for ‎the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. ‎registration requirements. This press release does not constitute an offer for sale of securities, nor a solicitation ‎for offers to buy any securities in the United States, nor in any other jurisdiction in which such offer, solicitation or sale would be unlawful. Any public offering of securities in the United States must be made by means of ‎a prospectus containing detailed information about the company and management, as well as financial ‎statements.‎