Pivot Completes C$1.1 Million Non-Brokered Private Placement and Loan Facility

Pivot Pharmaceuticals (CSE:PVOT,OTCQB:PVOTF) has announced it has closed a n on-brokered financing of a private placement and loan facility for a total of C$1.1 million.

As quoted in the press release:

he term of the outstanding 10% senior secured convertible debentures originally due March 2, 2019 (“Debentures”) has been extended by a period of 3 months to June 1, 2019. The Company also reports that it has appointed MNP LLP as its new auditor.

Private Placement

The Company issued 4,000,000 units (“Units”) at a price of C$0.20 per Unit for gross proceeds of C$800,000. Each Unit consists of one common share (“Common Share”) and one common share purchase warrant (“Warrant”). Each Warrant is exercisable for one Common Share for a period of three years from the date of issuance at an exercise price of C$0.30. The Common Shares and Warrants will be subject to resale restrictions for a period of four months and one day from the date of issuance. In connection with the closing of the Private Placement, a finder received cash commission of $88,000.

Loan Facility

The Company entered into a Loan Agreement for C$300,000, bearing interest at 10% per annum and maturing on September 4, 2019.  100,000 common shares will be issued as a Loan Origination Fee.

Partial Debt Settlement

The Company has settled C$750,000 (“Settlement Amount”) of its outstanding 10% senior secured convertible debentures due March 2, 2019 (“Debentures”) and has extended the remaining portion of the Debenture for a further 90 days without interest. As part of the satisfaction of extending the term on the remaining $2,750,000 of debt, the Company paid an extension fee of $250,000.

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