SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
CURRENT REPORT Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 6, 2020
of Registrant as Specified in Its Charter)
|(State or Other Jurisdiction of Incorporation or Organization)
||(Commission File Number)
||(IRS Employer Identification No.)|
483 Bay Street, N105
|(Address of Principal Executive Offices)
Registrant’s Telephone Number, Including
Area Code: (416) 640-7887
or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Securities registered pursuant to Section 12(b) of the Act:
of each class
of each exchange on which registered
Into A Material Agreement.
The information set forth in Item 2.03
is incorporated by reference into this Item 1.01.
|Item 2.03||Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant
On July 6, 2020, an investor (the “Lender”)
subscribed for a convertible promissory note (the “Note”) and loaned to Bionik Laboratories Corp. (the “Company”)
$199,994 (the “Loan”), pursuant to the Company’s convertible note offering for up to $7,000,000 (formerly $3,000,000
or up to $7,000,000 if oversubscribed) gross proceeds (the “Offering”).
The Company intends to use the net proceeds
from the Loan for the Company’s working capital and general corporate purposes.
The Note bears interest at a fixed rate
of 1% per month, computed based on a 360-day year of twelve 30-day months and will be payable, along with the principal amount,
on March 31, 2021 (the “Maturity Date”).
The Note will be convertible into equity
of the Company upon the following events on the following terms:
|·||On the Maturity Date, the outstanding principal and accrued
and unpaid interest under the Note will be converted into shares of common stock at a conversion price of $9.50 (the “Conversion
|·||Upon a change of control transaction prior to the Maturity
Date, the outstanding principal and accrued and unpaid interest under the Note would, at the election of the holders of a majority
of the outstanding principal of the loans under the Offering, be either (i) payable upon demand as of the closing of such change
of control transaction or (ii) convertible into shares of the Company’s common stock immediately prior to such change of
control transaction at a price per share equal to the lesser of (x) the Conversion Price, or (y) the per share consideration to
be received by the holders of the common stock in such change of control transaction.
The Note contains customary events of default,
which, if uncured, entitles the Lender to accelerate the due date of the unpaid principal amount of, and all accrued and unpaid
interest on, the Note.
Under certain circumstances, in the event
the Note converts into common stock and the Company raises capital through the sale of common stock for cash during the period
ending on the three year anniversary of the conversion date of the Note, and the price per share thereof (the “Offering Price”)
minus 20% is less than the Conversion Price, then in such event the Company shall issue to the Lender additional shares of common
stock equal to the number of conversion shares the Lender would have received upon conversion if the conversion price was a price
equal to a 20% discount to the Offering Price, less the number of shares actually issued on or as of the Maturity Date.
To secure the prompt payment and performance
to the Lender of the obligations under the Note, the Company granted to the Lender a continuing security interest in and to, and
lien on, all of its collateral.
The foregoing is a brief description of
the subscription of the Note and the terms of the Note, and is qualified in its entirety by reference to the full text of the form
of Subscription Agreement and the form of the Note, which are included as Exhibits 10.1 and 10.2, respectively, to the Company’s
Current Report on Form 8-K filed with the Securities and Exchange Commission on June 9, 2020 and which is incorporated herein by
Statements and Exhibits.
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: July 8, 2020
||BIONIK LABORATORIES CORP.|
||/s/ Leslie Markow|
||Chief Financial Officer|