By a News Reporter-Staff News Editor at Clinical Trials Week -- Medifocus Inc. (OTCQX:MDFZF)(TSX VENTURE:MFS) announced the initial closing of a non-brokered private placement of 354 units at a price of $10,000 per unit (the Units). The $3,540,000 is part of the Company's non-brokered private placement (the Offering) of $6,000,000 previously announced in August 2013 . The Company expects to complete the remainder of the Offering on or before January 17, 2014 . Each Unit consists of (i) a $10,000 redeemable promissory note ("Note"), bearing 8% annual interest payable on a quarterly basis, which are convertible into Common Shares at a conversion price of $0.25 per Common Share, and which are payable 36 months after the closing of the Offering; and (ii) Common Share purchase Warrants("Series C Warrants") to purchase 20,000 Shares at a price of $0.30 per Share a period of 36 months following the completion of the Offering. Any securities issued under the first tranche of the Offering are subject to a hold period until April 19, 2014 . If, at any time after the date that is 12 months following the closing of the Offering, the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange or the OTCQX in the United States exceeds $0.50 (or its equivalent in U.S. dollars) for at least 20 consecutive trading days, Medifocus may at its sole discretion, within 30 days of such occurrence, provide a redemption notice to the holders of Notes and, if it does so, Medifocus will redeem Notes by paying the holders thereof the principal amount of such Notes plus any accrued but unpaid interest on the 30th day after the redemption notice is given. If, at any time after the date that is 12 months following the closing of the Offering, the daily volume weighted average trading price of the common shares on the TSX Venture Exchange or the OTCQX in the United States exceeds $0.60 (or its equivalent in U.S. dollars) for at least 20 consecutive trading days, Medifocus may, within 30 days of such occurrence, provide an expiry acceleration notice to the holders of Series C Warrants and, if it does so, the Series C Warrants will, unless exercised, expire on the 30th day after the acceleration notice is given. Medifocus will pay finder's fees of $314,100 in cash and issue 1,256,400 Finder's Warrants to Asset Profits Limited , Shop 204 G/F The Arcade , 100 Cyberport Road , Hong Kong . Each finder's Warrant will entitle the holder to purchase one additional Common Share at a price of $0.30 per Common Share for a period of 36 months following the completion of the Offering. The net proceeds of the Offering will be used to accelerate the commercialization of the Prolieve® line of business and for working capital. Dr. Augustine Y. Cheung , President and CEO stated, "The completion of the first tranche of our $6 million private placement enables us to build upon and accelerate the tremendous progress we have made in rolling out our Prolieve® product and positioning it at the forefront of the BPH market. Since the acquisition of Prolieve in late July last year, we have tripled our Prolieve user sites from 60 to over 200. Given Prolieve's® proven success and the immediate market need for the treatment, we believe that this recent funding will allow us to significantly enhance our sales potential and move closer to break even." "While our immediate focus remains on commercializing the Prolieve® product, we will continue to advance our APA 1000 Phase III clinical trials to eventually break into multiple cancer treatment markets. We are extremely pleased that we have completed the first portion of our private placement and can build upon the progress we have made to date. With the extension of the remainder of the unit offering, we will have an additional opportunity to move forward with additional growth opportunities for our proprietary heat systems in the near future." Keywords for this news article include: Medical, Treatment, Healthcare, Clinical Trials and Studies (see also Medical, Healthcare ). Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2013, NewsRx LLC
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