BetterLife Pharma Inc (CSE:BETR, OTCQB:BETRF) has announced plans for a private placement offering of units at $0.10 each for total minimum aggregate gross proceeds of $1.5 million and maximum gross proceeds of $5 million.
The company said each unit is comprised of one common share and one common share purchase warrant, with each warrant entitling the holder to acquire one common share for 60 months from the date of issuance at an exercise price of $0.15.
The offering is anticipated to close on or about March 14, 2023, or at such later date as the company and the agent may determine.
BetterLife said the offering will be led by Bloom Burton Securities Inc as lead placement agent and Research Capital Corp on a best efforts agency basis. In connection with the offering, it said it will pay the agents a cash fee equal to 7% of the gross proceeds raised under the offering and grant them broker warrants equal to 7% of the number of units issued under the offering.
The units offered will be offered to purchasers resident in the provinces outlined in the offering document under the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions and will not be subject to a hold period under applicable Canadian securities laws.
The offering is subject to the company and the agent entering into a definitive agency agreement and subject to customary closing conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the Canadian Securities Exchange of the listing of the common shares issuable under the offering.
BetterLife Pharma is an emerging biotechnology company primarily focused on developing and commercializing two compounds, BETR-001 and BETR-002, to treat neuro-psychiatric and neurological disorders.
BETR-001, which is in preclinical and IND-enabling studies, is a non-hallucinogenic and non-controlled LSD derivative in development and it is unique in that it is unregulated and therefore can be self-administered. BetterLife’s synthesis patent for BETR-001 eliminates regulatory hurdles and its pending patent, for composition and method of use, covers treatment of major depressive disorder, anxiety disorder and neuropathic pain and other neuro-psychiatric and neurological disorders.
BETR-002, which is in preclinical and IND-enabling studies, is based on honokiol, the active anxiolytic ingredient of magnolia bark. BetterLife’s pending method of use and formulations patent covers treatment of anxiety-related disorders including benzodiazepine dependency.
BetterLife also owns a drug candidate for the treatment of viral infections such as COVID-19 and is in the process of seeking strategic alternatives for further development.
-- Updated with pricing of offering --
Contact the author at jon.hopkins@proactiveinvestors.com