Relay Medical Announces Closing of Private Placement for Proceeds of Over $1.5M

May 17, 2019 - Relay Medical Corp. (“Relay” or the “Company”) (CSE: RELA, OTC: RYMDF, Frankfurt: EIY2), has closed a private placement financing for gross proceeds of $1,532,500 through the issuance of 7,662,500 units at a price of 20 cents per unit.

Each unit comprises: (i) one common share in the capital of the company; and (ii) one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at an exercise price of 30 cents on or before Nov. 17, 2020.

Gross proceeds raised from the offering will be used for working capital and general corporate purposes. The securities issued upon closing of the offering are subject to a hold period until Sept. 18, 2019, pursuant to applicable securities laws.

Certain eligible persons were paid a cash commission equal to 8 per cent of the proceeds raised from subscribers introduced to the company by such finders and the company also issued an aggregate of 93,200 finder warrants to finders, each finder warrant entitling the holder to acquire one unit at a price of 20 cents for a period of 18 months from the date of issuance.

Certain insiders of the company participated in the first tranche of the offering, purchasing an aggregate of 517,500 units. The participation of such insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the offering by insiders does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the offering, which the company deems reasonable in the circumstances so as to be able to avail itself of the proceeds of the offering in an expeditious manner.

About Relay Medical Corp.

Relay Medical is an evolving integrated medtech accelerator headquartered in Toronto, Canada, acquiring early-stage technologies and inventions, and advancing and preparing them for precommercial acquisitions in the healthtech marketplace. By integrating the financing, development and exit process into one organization led and managed by one expert team, Relay Medical is building the capacity to accelerate and transact technologies with high efficiency and grow into a leading engine for medtech innovation in the global healthtech marketplace..