(Alliance News) - PanGenomic Health Inc on Tuesday said it has agreed a non-binding letter of intent with Crescita Cpital LLC for a USD5 million drawdown facility.

The Vancouver, Canada-based precision health company said under the facility it will have a three-year period in which it can use the USD5 million for general working capital purposes and acquisitions.

The firm said it will issue units to Crescita at 85% of the closing price at drawdown, in consideration for advances made under the facility. It said each unit will comprise of a share and one half of one common share purchase warrant.

PanGenomic will be required to pay a commitment fee to Crescita equal to 6% of the total commitment of USD300,000. It will also pay Crescita's legal fees up to USD26,000.

Chief Executive Maryam Marissen said: "We believe that access to their innovative equity financing platform and international business network will help grow our business by accelerating development and marketing initiatives for our MUJN, Nara and Mindleap products."

PanGenomic shares were untraded at 2.00 pence per share on Tuesday in London.

By Harvey Dorset, Alliance News reporter

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