Salona Global Medical Device Corporation announced a bought deal private placement of 7,280,000 units at a price of CAD 0.55 per unit for gross proceeds of CAD 4,004,000 on January 27, 2022. The transaction will involve participation primarily from established institutional investors. The company has entered into an agreement with a syndicate of underwriters for the transaction.

Each unit will consist of one common share and one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share at an exercise price of CAD 0.70 per share for a period of 36 months from the closing date. The company will grant the underwriters an option to increase the size of the transaction by up to an additional 1,092,000 units, for additional gross proceeds of up to CAD 600,600, exercisable in whole or in part at any time up to 48 hours prior to the closing date of the offering.

The transaction is expected to close on or about February 15, 2022, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.