DiagnosTear Technologies Inc. said it will conduct a non-brokered private placement to raise up to C$1.4 million, issuing up to 2.8 million units at C$0.50 per unit. Each unit consists of one common share and one warrant, with each warrant exercisable to purchase an additional common share at C$1.00 over the next 12 months.
The company expects BioLight Life Sciences Ltd.—its parent—and Elcam Medical Ltd. to each subscribe for up to one-third of the total offering. Certain insiders may also participate, which the company noted constitutes a related-party transaction under Multilateral Instrument 61-101. However, it anticipates exemption from formal valuation and minority shareholder approval requirements, as the insiders' potential acquisition would not exceed 25% of DiagnosTear’s market capitalization.
Net proceeds from the placement will be directed toward working capital and general corporate purposes. All securities issued will be subject to a statutory hold period of four months and one day from the closing date, pending approval by the Canadian Securities Exchange.
DiagnosTear, based in Vancouver, develops diagnostic solutions for ophthalmic conditions using its TeaRx platform, which analyzes tear fluid for point-of-care testing of eye diseases. The company holds CE-IVD and Israeli Ministry of Health approvals for its dry eye syndrome test but has not yet secured FDA clearance.
