Mantra Pharma Inc. Closes Private Placement| MENAFN.COM

Thursday, 18 August 2022 05:10 GMT

Mantra Pharma Inc. Closes Private Placement

(MENAFN- Newsfile Corp) Mantra Pharma Inc. Closes Private Placement

Vancouver, British Columbia--(Newsfile Corp. - June 10, 2022) - Mantra Pharma Inc. (the 'Company') is pleased to announce that it has closed its non-brokered private placement for gross proceeds of $143,750.00 through the sale of 2,875,000 units of the Company (' Units ') at a price of $0.05 per Unit (the ' Private Placement '). Each Unit is comprised of one common share of the Company (a ' Share ') and one common share purchase warrant (each, a ' Warrant '). Each Warrant entitles the holder to purchase an additional Share at a price of $0.05 per Share for a period of five years.

The proceeds from the sale of the Units are intended to be used to settle certain outstanding indebtedness of the Company and for general working capital purposes. No finders fees were issued under the Private Placement.

All securities issued pursuant to the Private Placement will be subject to a four-month hold period from the date of issue.

Multilateral Instrument 61-101

Under the Private Placement, the following insiders of the Company purchased Units: Henry Park, a director of the Company, purchased 500,000 Units through a company controlled by Mr. Park; and Rajinder Chowdhry, President, CEO and a director of the Company, purchased 1,850,000 Units. Their participation is considered to be a 'related party transaction' as defined under Multilateral Instrument 61-101 (' MI 61-101 '). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the Private Placement nor the consideration to be received for those securities, in so far as the Private Placement involves the insiders, exceeds 25% of the Company's market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Private Placement as the details of the Private Placement and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.

Early Warning Disclosure

Rajinder Chowdhry acquired ownership of 1,850,000 Units under the Private Placement. Prior to the Private Placement, Rajinder Chowdhry held 21,555,617 Shares, which represented approximately 49.5% of the issued and outstanding Shares of the Company. After giving effect to the Private Placement Rajinder Chowdhry beneficially owns and controls a total of 23,405,617 Shares. These securities represent 50.42% of the Company's issued and outstanding Shares on a non-diluted basis or 52.44% of the Company's issued and outstanding Shares on a partially diluted basis assuming exercise of Rajinder Chowdhry's Warrants only. Rajinder Chowdhry acquired the Units for investment purposes. Rajinder Chowdhry intends to evaluate his investment in the Company and to increase or decrease his shareholdings from time to time as he may determine appropriate. A copy of the early warning report being filed by Rajinder Chowdhry may be found on the Company's SEDAR profile at .

For more information please email .

Contact Information

Mantra Pharma Inc.
Raj Chowdhry, Chief Executive Officer

Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's intention to carry out the Private Placement and the use of proceeds from the Private Placement constitute 'forward-looking information' within the meaning of Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company will be able to use the proceeds of the Private Placement as anticipated. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, inability to use the proceeds from the Private Placement as anticipated. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Not for distribution to United States newswire services or for dissemination in the United States

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