Antibe Therapeutics Inc (CVE:ATE) (OTCMKTS:ATBPF) announced Tuesday it is proposing to sell units in the company to raise money as it further develops its lead drug, ATB-346.
The drug targets acute and chronic pain associated with osteoarthritis. Its Phase 2B dose-ranging, efficacy study for the drug remains on track, and the company hopes to use the proceeds “to fund certain activities in preparation for planned meetings with regulatory agencies and eventual global partnering discussions” once the study ends.
Antibe is working on getting the drug ready for an investigational new drug (IND) application, as well as a end-of-Phase-2 meeting with the US Food and Drug Administration.
The preparation is intense, requiring comprehensive data packages encompassing pharmacokinetics, metabolism, toxicology, chemistry and manufacturing, among other factors.
Antibe has proposed an offering price of C$0.30 per unit, and each unit will be comprised of one common share and one-half of one common share purchase warrant. Antibe shares were halted pending the news, having dropped by 3% to C$0.30.
The Toronto-based company said the total size of the offering “will be determined in the context of the market at the time of entering into an agency agreement for the offering.”
Each warrant will entitle the holder to purchase one common share at an exercise price of $0.40 for a period of 36 months following the closing date of the offering.
The offering will be made in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, and the company expects to grant a 30-day over-allotment option to sell up to an additional 15% of the number of units and/or warrants offered.
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