Tetra Bio-Pharma Inc (TSE:TBP) (OTCQB:TBPMF) (FRA:JAM1) reported plans to raise gross proceeds of about C$1.9 million through a non-brokered private placement of 11,141,176 units of the company at a price of C$0.17 per unit.
The company noted that the offering involves a group of strategic investors, including Dr. Michael Nashat, former CEO of TerrAscend Corp and co-founder of OnPharm Independent Pharmacy Group, one of the largest independent non-banner group in Canada.
“The arrival of strategic investors is very encouraging. It shows that we are on the right path and that our achievements in 2020 have been recognized by established industry leaders,” Tetra Bio-Pharma CEO Guy Chamberland said in a statement.
READ: Tetra Bio-Pharma gearing up for a milestone 2021 as it advances coronavirus drug candidate ARDS-003 to human trials
Tetra Bio-Pharma said it intends to use the net offering proceeds to bridge its working capital and general corporate requirements to further pursue its clinical trials and regulatory activities.
Each unit of the private placement will consist of one common share of the company, plus one common share purchase warrant, which entitles the holder to acquire one share of the company at a price of C$0.21 per share for a period of 24 months from the closing date.
The warrants are subject to acceleration, at the company's discretion, in the event the volume-weighted average closing price of the common shares on the Toronto Stock Exchange is equal to or greater than C$0.60 for a period of 10 consecutive trading days.
The company said the offering is expected to close on or about January 29, 2021.
Tetra Bio-Pharma is a Canadian biotechnology company that is reimagining cannabinoid-based drug development.
The Ottawa-based firm has a pipeline of novel proprietary drugs targeted towards a multitude of conditions, but it is their potential coronavirus (COVID-19) treatment that is currently exciting investors.
Derived from cannabinoids, ARDS-003 is designed to prevent and treat acute respiratory distress syndrome (ARDS), a severe inflammatory response that could be life-threatening to patients with COVID-19 or sepsis.
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