Filament Health Corp (NEO:FH, OTCQB:FLHLF) has secured a bridge financing deal totaling C$1 million with Negev Capital Fund One and chief executive Benjamin Lightburn.
Negev Capital will exercise warrants to purchase 17.2 million common shares at a reduced price of 5 cents per share. Negev will also convert a C$1.25 million note into 25 million common shares.
This move will give Negev over 20% ownership in Filament, a clinical-stage natural psychedelic drug development company.
Filament agreed to extend the expiration date of the remaining warrants held by Negev's affiliates by twelve months. These changes will bring C$900,000 in proceeds.
CEO Lightburn will also buy 2.7 million shares, adding another $100,000. His shares will be subject to a holding period of four months and one day, as required by law.
The company's independent directors concluded that this financing, including the adjustments to warrant and note prices, is in its best interest given current market conditions.
"We are pleased to reinforce our continued commitment to Filament Health," said Ken Belotsky, Partner at Negev Capital.
"Filament is strategically positioned to combat substance use disorders, leveraging its groundbreaking botanical drug development platform and an industry-leading intellectual property portfolio."