Voyageur Pharmaceuticals Ltd. (TSX-V: VM) announced the closing of its non-brokered private placement, raising aggregate gross proceeds of $5,005,278.32. The offering, conducted under the Listed Issuer Financing Exemption (LIFE), consisted of 30,935,000 units at $0.10 per unit and 15,931,486 flow-through units at $0.12 per unit. The company issued warrants exercisable at $0.20 per share for 36 months, with an acceleration clause if shares trade at $0.40 or higher for 10 consecutive days.
The net proceeds will be directed toward FDA licensing for Voyageur's barium contrast product suite, regulatory approvals for a bulk sample extraction at the Frances Creek project, exploration and feasibility work at Frances Creek, U.S. iodine project development, and general corporate purposes. This funding is critical for Voyageur's strategy to become a vertically integrated supplier in the radiology contrast media market, which currently relies heavily on synthetic barium sulfate. The company's Frances Creek barite project, in which it owns a 100% interest, contains high-grade mineral that management believes can replace synthetic products with higher-quality, lower-cost imaging agents.
Insiders subscribed for 900,000 units, representing 1.92% of the securities issued, increasing their non-diluted ownership to 0.41%. The participation constituted a related-party transaction under Multilateral Instrument 61-101 but was exempt from formal valuation and minority approval requirements as the fair market value did not exceed 25% of the company's market capitalization. The offering was unanimously approved by the board of directors, excluding subscribing directors.
Voyageur, a Canadian developer of pharmaceutical-grade barium and iodine for medical imaging contrast media, aims to generate cash flow by partnering with established third-party GMP pharmaceutical manufacturers in Canada, ensuring global regulatory validation. The company has already developed five barium contrast products with Health Canada licenses. Long-term plans include transitioning into a high-margin domestic manufacturer of radiology drugs.
The securities issued under the LIFE exemption are not subject to a hold period under Canadian securities laws but may be subject to TSX Venture Exchange requirements. The offering remains subject to final TSXV acceptance. A copy of the offering document is available on SEDAR+ and the company's website.
Completion of the offering positions Voyageur to advance its vertically integrated model, controlling raw material sourcing through final production, which the company believes will ensure quality and cost efficiency. The funds will support key milestones, including FDA licensing for barium products and progress on the Frances Creek and U.S. iodine projects.
