Squalus Medical announced a private placement and entered into a securities purchase agreement of 69,444 shares of Series A Redeemable Preferred Shares at $72 per Series A Share and warrants to purchase 27,778 Series A Shares for aggregate consideration of $4,999,968 on June 9, 2022. The transaction will include participation from new lead investor Innovation Pharmaceuticals Inc. for 55,556 shares and 27,778 warrants to purchase newly authorized Series A-1 Preferred Shares , and other investors. The warrant has an exercise price of $108 per series A share and is exercisable until the earliest of five years after FDA approval of SML's medical device, as more fully set forth in the Articles of Association, the closing of a deemed liquidation, 30 days following consummation of a qualified financing event, or consummation of an initial public offering by SML. Following the closing under the Purchase Agreement, Innovation Pharmaceuticals Inc. owns approximately 35.7% of issued and outstanding equity securities and approximately 41.6% of equity securities on a fully diluted basis. The company shall reimburse the reasonable fees and expenses of $25,000 to Hogan Lovells US LLP.

On the same date, the company announced that it has issued 55,556 shares for proceeds of $4,000,032 from Innovation Pharmaceuticals Inc in the first tranche.