- Holista Colltech (HCT) has issued a clarification regarding an announcement it made yesterday, its third clarification or retraction in two months
- The company stated that the 12 million shares in question in yesterday’s announcement were, in fact, set-off and not new shares being issued
- Under a Controlled Placement Agreement, Acuity Capital held the 12 million shares as collateral
- Holista Colltech has now set-off those previously issued shares to raise $2.2 million and the Controlled Placement Agreement has been terminated
- The funds will be used to accelerate the global roll-out of the Natshield hand sanitiser
- This contains Path-Away, an active ingredient which has been tested to be more than 99.99 per cent effective against feline coronavirus which is a surrogate to COVID-19 rather than the novel coronavirus itself
- Company shares are trading flat so far today and are priced at 19.5 cents each
Holista Colltech (HCT) has issued a clarification regarding an announcement it made yesterday, its third clarification or retraction in two months.
The company stated that the 12 million shares in question in yesterday’s announcement were, in fact, set-off and not new shares being issued.
Under a Controlled Placement Agreement (CPA), Acuity capital held the 12 million HCT shares as collateral. Holista Colltech has now set-off those previously issued shares to raise $2.2 million.
These were deemed at a price of 18.33 cents per share, representing a 12.8 per cent premium on the 15-day volume-weighted average price of HCT shares.
Holista Colletech issued Acuity Capital with 6.5 million shares in February 2018 as collateral under the CPA and another 5.5 million in February 2020 following an extension to the CPA.
Including the recent set-off of the 12 million shares in question, Holista has used the CPA to raise a total of $6.5 million. Now, Holista has used up all collateral shares and the CPA has been terminated.
The funds will be used to accelerate the global roll-out of the Natshield hand sanitiser, including securing supply lines for bottling, breaking into new markets, developing online branding and commercialising the Nasal Sanitising Balm and other personal sanitation products.
Third correction or retraction in two months
Natshield and an active-ingredient it contains called Path-Away have both been the subject of clarifications or retractions in recent months.
Firstly, Holista claimed in an ASX announcement released on February 20, 2020, that Path-Away had been proven to kill all previously tested corona-type viruses as well as 170 other different pathogens. It later retracted those statements.
The company then set about testing Path-Away at a U.K. microbiology laboratory. These tests found Path-Away to be 99.99 per cent effective against the feline coronavirus, a surrogate of COVID-19.
Often laboratory testing uses a surrogate, or substitute, virus rather than testing on the actual virus when it is deemed to be high-risk or difficult to cultivate.
Yesterday, Holista Colltech issued a retraction for a statement on twitter which omitted the word ‘surrogate’ and reiterated that the testing was completed on a ‘surrogate of COVID-19’.
Company shares are trading flat so far today and are priced at 19.5 cents each at 2:19 pm AEST.