01:05 PM EDT, 07/11/2024 (MT Newswires) -- NuGen Medical Devices ( NGMDF ) , a developer of needle-free devices to administer therapeutics under the skin, said Thursday it plans to raise up to $10 million in a non-brokered private placement of secured convertible debentures.

The five-year convertible debentures bear an interest rate of 12% and can be converted into share units priced at $0.075 and made up of a share and a five-year warrant to buy a second share for $0.12.

The convertible debentures will be secured by a first-ranking security interest in all of the company's property and assets under a general security agreement.

NuGen plans to use the proceeds for working capital purposes, expanding production and filling sale-purchase orders globally.

Further, the company expects Sol-Millennium Medical Group or its affiliates will buy enough of the offered debentures that, if and when converted into units, would result in Sol-M holding more than 20% of the then-issued and outstanding shares, making Sol-M a new control person of the company.

The creation of a new control person requires shareholder approval. The company will seek approval at its upcoming annual and special meeting on Aug. 20.

The company shares were last seen down $0.01 to $0.14 on the TSX Venture Exchange.

Price: 0.14, Change: -0.01, Percent Change: -6.67