Kalytera Therapeutics (TSXV: KLY) appears to be in quite the pickle. The company announced this morning that it has received conditional approval this morning to conduct a private placement for gross proceeds of $485,000, despite being halted under a failure-to-file order. Why the financing? So that the company can afford to have its financials audited and subsequently filed with the exchange.

The offering is expected to blow out the company’s share structure, with units being priced at $0.015 each. A total of 32.3 million units are expected to be sold, each of which contains one common share and one half warrant. Each half warrant has an exercise price of $0.05 per share for a period of two years from the date of issue.

Specifically, the private placement is being conducted, “primarily for the purpose of paying audit and accounting fees that must be paid so that the Company can file its annual financial statements for the year ending December 31, 2019.” Remaining funds after all audit and accounting fees are paid are said to be allocated for legal fees, insurance premiums, and general and administrative expenses.

The financing is expected to close by June 22, 2020, while financials are expected to be “completed soon.” Kalytera currently expects to complete its audited financials prior to the expiration of the failure to file cease trade order.

Kalytera Therapeutics remains halted, and last traded at $0.025 on the TSX Venture.

Information for this briefing was found via Sedar and Kalytera Therapeutics Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.