Filament Health Corp (OTCQB:FLHLF, NEO:FH) told investors it intends to complete a non-brokered private placement for gross proceeds of up to C$2 million, subject to regulatory approval.
Nevev Capital, a leading venture fund in the psychedelic drug development space that has made over 25 investments to date, will lead the offering, it added.
“We are thrilled to reinforce our ongoing commitment to Filament Health, a pioneering entity in the psychedelic domain,” said Ken Belotsky, partner at Negev Capital.
“Filament is strategically positioned, leveraging a groundbreaking botanical drug development platform and holding industry-leading intellectual property. Their meticulous focus on combating substance use disorders represents a significant opportunity for meaningful advancements and value creation in this space.”
Filament co-founder and CEO Benjamin Lightburn added: “We are grateful for Negev’s ongoing support and look forward to continuing to build our partnership.”
The company noted that the C$2 million offering is subject to it raising a minimum of C$1 million through the offering of up to 13,333,333 units — subject to a minimum of 6,666,667 units — at C$0.15 per each, or another price approved by the NEO Exchange.
Each unit will consist of one common share and one common share purchase warrant, with each warrant exercisable to acquire an additional share at an exercise price of C$0.20 for 36 months from the closing date of the offering.
The company said it expects to use the net proceeds from the offering to advance its Phase 2 methamphetamine use disorder clinical trial which has already received US Food and Drug Administration (FDA) approval, as well as other general corporate purposes.
Filament Health is a clinical-stage natural psychedelic drug development company. The company’s platform of proprietary intellectual property enables the discovery, development, and delivery of natural psychedelic medicines.
Contact the author at stephen.gunnion@proactiveinvestors.com