Champignon Brands Inc (CSE:SHRM), the psychedelic healthcare company, is raising $10 million to expand its North American clinical footprint.
The Vancouver-based company plans to open at least five new ketamine clinics in the US by the end of 2020.
Earlier this month, Champignon told shareholders it is in discussions with clinic operators in California, New York, Pennsylvania, Texas, Florida and Missouri.
READ: Champignon Brands appoints psychiatry and pharmacology professor, Roger McIntyre as new CEO
The offering also comes just after the firm announced that ketamine expert Dr Roger McIntyre is taking up the reins as its CEO.
McIntyre implemented and developed the Canadian Rapid Treatment Centre of Excellence (CRTCE), the country's first-ever rapid-onset treatment centre for persons with mood disorders.
In a deal led by co-lead underwriters Eight Capital and Canaccord Genuity, Champignon is offering 11,765,000 units priced at $0.85 per unit for total gross proceeds of $10,000,250. Each unit is comprised of one share and one half of one warrant exercisable at C$1.15 for a 24-month period following the closing date.
The firm said it has granted the underwriters an option to buy an additional 5.882,500 units at the issue price. The underwriters will receive a cash commission equal to 7% of the aggregate gross proceeds of the offering and warrants exercisable to acquire a number of units equal to 7% of the total units sold under the offering.
The offering is expected to close by June 11.
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