Filament Health Corp (NEO:FH, OTCQB:FLHLF) said it has signed a non-binding term sheet to receive up to US$14.4 million in funding through a convertible note with an affiliate of advisor and investor Helena Partners Inc.
The clinical-stage natural psychedelic drug development company said the financing is expected to be completed in December 2023, concurrent with the closing of the previously announced business combination among Filament, special purpose acquisition company Jupiter Acquisition Corporation, and 1427702 BC Ltd.
"The execution of a financing with Helena will provide Filament with significant capital to fund our operations, advance our drug development program, and contribute to cash at the closing of the Proposed Business Combination," Filament Health CEO Benjamin Lightburn said in a statement.
"We believe that the financing represents an important de-risking milestone for executing the Proposed Business Combination and our anticipated listing on Nasdaq," he added.
Filament noted that it expects to provide additional details regarding the financing if and when definitive documentation related to the convertible note is executed.
It added that completion of the financing is subject to, among other matters, the completion of due diligence, the negotiation of definitive agreements providing for the financing, and the satisfaction of the conditions negotiated therein, including approval of the boards of both companies, as well as regulatory approvals.
Filament Health is a clinical-stage natural psychedelic drug development company.
Contact Sean at sean@proactiveinvestors.com