Braxia Scientific Corp. (CSE:BRAX, OTC:BRAXF) said it has closed the first tranche of its previously announced non-brokered offering resulting in the issuance of 13,658,524 units of the company at a price of 5.5 cents per unit for aggregate proceeds of $751,218.83.
The company said it intends to use the net proceeds of the LIFE offering and the concurrent placement to support the rollout of its telemedicine platform in the United States, for clinic expansion in Canada and to continue intellectual property development, and the company expects to use the net proceeds of the concurrent placement for working capital and general corporate purposes.
Each unit in the offering consists of one common share of the company and one common share purchase warrant. Each warrant entitles its holder to purchase one additional common share at an exercise price of 7 cents for a period of 36 months from the date of issue.
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Units in the LIFE first tranche were offered for sale to purchasers resident in Canada (except Quebec) under the listed issuer financing exemption (LIFE) under Part 5A of National Instrument 45-106 -- Prospectus Exemptions, and will not be subject to any statutory hold period in accordance with applicable Canadian securities laws. The company may close additional tranches of the LIFE offering
The company also closed a non-brokered private placement in Canada and the United States of 9,327,272 units on the same terms and at the same price as the LIFE offering for aggregate gross proceeds of $513,000. The units sold under the concurrent placement in Canada will be subject to a statutory hold period of four months and one day in accordance with applicable Canadian securities laws.
The concurrent placement was led by Dr Roger McIntyre, chairman and chief executive officer of Braxia, who subscribed for 3,181,818 units for aggregate gross proceeds of $175,000. Dr McIntyre is an insider of the company and his participation in the concurrent placement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.
Braxia Scientific - which last month signed a letter of intent to be acquired by Irwin Naturals Inc - is a medical research and telemedicine company with clinics that provide innovative ketamine treatments for persons with depression and related disorders.
Braxia also launched its US-based end-to-end telemedicine platform KetaMD, which utilizes leading technology to provide access to safe, affordable, and potentially life-changing at-home ketamine treatments for people living with depression and related mental health conditions. Through its medical solutions, Braxia aims to reduce the illness burden of brain-based disorders, such as major depressive disorder among others.
Braxia is primarily focused on (i) owning and operating multidisciplinary clinics, providing treatments in-person and virtually for mental health disorders, and (ii) research activities related to discovering and commercializing novel drugs and delivery methods. Braxia seeks to develop ketamine and derivatives and other psychedelic products from its IP development platform. Through its wholly owned subsidiary, Braxia Health (formerly the Canadian Rapid Treatment Center of Excellence Inc), operates multidisciplinary community-based clinics offering rapid-acting treatments for depression located in Mississauga, Toronto, Kitchener-Waterloo, Ottawa, and Montreal.
Contact the author at jon.hopkins@proactiveinvestors.com