Universal Ibogaine Inc (TSX-V:IBO) said it has closed its previously announced non-brokered private placement of convertible notes for the aggregate principal amount of C$626,500.
The company said the proceeds of the debt financing will be used to complete its planned ibogaine-based clinical trial application with Health Canada, including finalizing a supply agreement for ibogaine to be used in the eventual trials, and for general working capital purposes.
The company also announced the closing of its non-brokered private placement of shares, issuing 400,000 shares at a price of $0.025 per share for total proceeds of $10,000, which will be used to fund upgrades to and the uninsured portion of certain costs related to prior flooding damage at the company’s Kelburn Recovery Centre in Winnipeg.
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In a separate statement, UI said it was in the process of finalizing an offering of convertible debt securities to fund its planned trial and for general working capital purposes.
The offering, which will consist of “secured guarantee convertible notes”, will bear interest at 8%, payable quarterly, and have a maturity of three years from closing.
On future conversion, the holder of the notes will receive one unit comprised of one share of UI and one-half share purchase warrant, the company said.
The notes will have a conversion price of $0.10 per share in year one after closing, $0.15 for year two, and $0.20 for year three.
Each whole warrant will have an escalating annual exercise price which will be $0.20 if converted in year one after closing, $0.40 if converted in year two and $0.50 if converted in year three.
UI CEO Nick Karos said the company was continuing to find support for its offering within the current sectoral and macro environment.
“We intend to finalize commitments for funding up to C$5 million,” Karos said.
“We are confident this will provide adequate capital to fund our clinical trial to demonstrate the safety and efficacy of ibogaine in opioid detoxification.”
In addition to the convertible debenture, UI said it intends to undertake a private placement offering of up to 5 million shares at a price of $0.025 per share.
UI is a life sciences company, with a mission to transform addiction treatment using medicalized ibogaine through a planned Canadian clinical trial focused on opioid use disorder, and ultimately to utilize that protocol globally through planned future licensing agreements.
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