03:29 PM EDT, 04/03/2024 (MT Newswires) -- Principal Technologies Inc. (PTEC.V), announced Wednesday that on March 8, 2024, it entered into a binding commitment letter with the effect that the GreenIslands Opportunities Fund will provide a secured loan in the principal amount of eight million euros to provide acquisition financing with respect to the cash portion of the purchase price for Vivostat A/S, as previously outlined, and for general working capital purposes.

According to Wednesday's statement, the Loan provides full financing for the company to close the Vivosat buy, and after final adjustments any remaining funds will be utilized for working capital purposes.

"This loan, by our major shareholder, effectively underwrites our previously-announced acquisition of Vivostat," said Jerry Trent, Chief Executive Officer of Principal Technologies Inc., in the statement. "Vivostat is the world's leading autologous sealant solution, developed by Bristol Myers Squibb at a cost of US$100 million. We are now on track to bring this solution to the thousands of hospitals and clinics in jurisdictions in which it has never been sold, including Japan, Brazil and Australia."

In addition, PTEC announced a non-brokered financing of up to four million units at $0.25 for gross proceeds of up to $1 million. Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one additional share of the company at $0.30 for a period of two years from the date of closing.

Proceeds of the private placement will be used for general working capital and corporate purposes.