Canadian drug discovery firm Neural Therapeutics has bolstered its cash levels with a rights offering and concurrent private placement.
The ethnobotanical drug discovery and development company focuses on the discovery of plant-based active substances to develop over-the-counter dietary supplements and psychedelic-based therapeutic medicines for mental health treatment.
It recently announced a rights offering of nearly 34.5 million shares to existing shareholders at a subscription price of $0.03 per share, which should raise gross proceeds of nearly $1.2 million.
Concurrently, Neural plans to offer up to 30 million shares priced at $0.03 in a private placement, which should raise another $900,000.
Following the completion of a spin-out, Neural is now a reporting issuer and is working towards listing its shares on a stock exchange, the company said.
Ian Campbell, the CEO of Neural, emphasized the company's commitment to advancing its business plan and preserving shareholder value.
“While the overall capital market conditions for junior life sciences companies continue to be volatile, we remain committed to advancing our business plan and preserving shareholder value,” Campbell said in a statement.
“Securing the necessary funding remains our top priority and we are counting on the support of our shareholders to help us achieve this goal. We greatly appreciate everyone’s support and following to date and look forward to unveiling some of the initiatives that our team has been working on over the past few years.”
The company's key ingredient is mescaline derived from cacti, and it has established a supply chain in Peru for sourcing specific cactus species containing mescaline.
Proceeds from the rights offering and private placement will be used for general corporate purposes, administrative expenses, and funding the company's research and development programs.
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