Valeo Pharma announced today that it closed an upsized private placement worth more than $6.6 million.

Montreal, Canada-based Valeo issued 6,645 unsecured, non-convertible debenture units at a purchase price of $1,000 per unit, totaling gross proceeds of $6.645 million, according to a news release.

Each debenture unit consists of one unsecured non-convertible debenture in the principal amount of $1,000 and 200 Class “A” share purchase warrants, each of which entitles the holder to purchase one Class “A” share of the company at an exercise price of $1.60 per share at any time up to 24 months following the closing date of the offering.

Debentures will mature, at the latest, nine months after the closing of the offering and bear interest at a rate of 8% per annum from the date of issue, payable in cash, semi-annually in arrears.

The securities issued under the offering are subject to a four-month hold period. The company has paid $38,500 as finder’s fees to arm’s-length parties in connection with the private placement and issued 7,700 broker warrants. Insiders, senior executives, staff members and three company directors participated, bringing in $2.6 million for the placement.

Proceeds from the offering are expected to be used for working capital and general corporate purposes. Valeo develops prescription products focused on treating respiratory diseases, among other things. Its offerings include the Breezhaler asthma treatments and the Redesca low molecular weight heparin biosimilar.

“The closing of this upsized placement is testament to the confidence and support our insiders and those close to the company have in management and Valeo’s business model,” Valeo CEO Steve Saviuk said in the release. “I cannot overemphasize what a pivotal year 2021 is becoming with the recent launch of Redesca and the imminent launches of Enerzair Breezhaler and Atectura Breezhaler.”