Universal Ibogaine Inc.(TSXV:IBO), a life sciences company with a mission to deliver medicalized ibogaine-centered addiction care, advises that it is in process of finalizing an offering of convertible debt securities. The Offering will consist of “Secured Guarantee Convertible Notes” which will bear interest at 8% (payable quarterly) and have a maturity of 3 years from the Closing of the Offering. Closing of the Offering, and the payment of any finders fees related thereto, is subject to the required approvals of the TSX Venture Exchange.
On a future conversion, the holder of the Notes will receive one “Unit” comprised of one UI common share and a one-half common share purchase warrant. The Notes will have a conversion price of $0.10 per common share in year 1 after Closing, $0.15 for year 2, and $0.20 for year 3. Each whole Warrant will have an escalating annual exercise price which will be $0.20 if converted in year 1 (after Closing), $0.40 if converted in year 2, and $0.50 if converted in year 3 after Closing. The Notes will be subordinated to the Company’s existing mortgage on the Kelburn Recovery Centre and a General Security Agreement will be issued as part of the Closing by UI’s BC based 100% owned subsidiary company (which in turn owns the Company’s Kelburn Recovery Centre addiction treatment clinic near Winnipeg and a 20 acre undeveloped land project in Belize).
The proceeds from the Offering are intended to be used in completing the Company’s planned ibogaine based clinical trial application with Health Canada, including finalizing a supply agreement for ibogaine to be used in the eventual trials, and for general working capital purposes.
“We are pleased to have generated support for this Offering, for which we intend to finalize commitments shortly for a funding target of up to $15 million. This funding will help to advance UI to its next stage of development in our ultimate goal of having ibogaine medicalized and accepted for wide-scale use in addiction treatments.”Nick Karos, UI CEO
In addition to the convertible debenture, UI intends to undertake a private placement Offering of up to 15 million common shares at a price of $0.025 per common share.
About Universal Ibogaine Inc
UI is concurrently developing a state of the art holistic addiction treatment protocol at its Kelburn Recovery Centre that, which when paired with the planned ibogaine detox protocol, is intended to revolutionize the way we treat addiction and drastically improve the lives of individuals and families affected by addiction.