TORONTO – Coretec is seeking a private placement of up to 10 million common shares, with the proceeds going toward general working capital. The company could raise up to $1 million from the offering.

The shares will mature three years after the private placement closing date, with a 12% rate of interest, half payable in cash, the other half in common shares.

The offering is structured in 1,000 units, with each unit consisting of one convertible debenture of the company (worth $1,000 apiece) and 10,000 common share purchase warrants. In total, the offering should bring $1 million in principal plus the value of 10 million warrants.

CEO Paul Langston and director Robert Morrison have indicated that they could each subscribe for up to $500,000 of the principal amount and five million warrants. Management and directors of Coretec may subscribe for the balance.

Each warrant shall be exercisable for one common share at a price of 13 cents per share. Coretec, which is listed on the Toronto Stock Exchange, is trading today at five to seven cents per share.

Currently, over 18 million common shares are issued and outstanding, of which Langston and Morrison are holders of approximately 24% and 20%, respectively.