Numinus Wellness Inc. (CVE:NUMI) said it has upsized its agreement with Eight Capital and Canaccord Genuity as underwriters for a 'bought-deal' offering to now raise aggregate gross proceeds of $35 million, up from $30 million previously
The company said the underwriters have now agreed to purchase an aggregate of 28,000,000 units, up from an initial 24,000,000 units in the company at an unchanged price of $1.25 each. Each unit will consist of one Numinus common share and one-half of one common share purchase warrant. Each warrant will be exercisable to acquire one common share of the company for a period of 24 months from closing of the offering at an exercise price of $1.75 each.
Numinus said it intends to use the proceeds of the offering for working capital and general corporate purposes.
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The company has also granted the underwriters an unchanged over-allotment option to purchase up to an additional 3,600,000 units at the offering price, exercisable at any time at the discretion of the underwriters, for a period of 30 days after and including the closing date, which would result in additional proceeds of up to $4.5 million.
The Units will be offered by way of a prospectus supplement to the company’s short-form base shelf prospectus to be filed in all provinces and territories of Canada except Quebec. The units may also be offered in the United States on a private placement basis pursuant to applicable exemptions from the registration requirements of the United States Securities Act of 1933, as amended and applicable state securities laws, and in other offshore jurisdictions provided that no prospectus filing or comparable obligation arises.
The offering is expected to close on March 18, 2021, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
Numinus Wellness is a mental health and wellness company creating an ecosystem of solutions centred around safe, evidence-based, accessible psychedelic-assisted psychotherapy to help people heal and be well. I
It is focused on three areas: Numinus Health is dedicated to delivering innovative treatments to address physical, mental, and emotional health, through clinics and virtual services.; Numinus R&D is conducting implementation science and leveraging partnerships to beta-test and refine optimal models of psychedelic-assisted psychotherapy delivery, setting the stage for approved routine use in mental health and wellness care; and Numinus Bioscience is focused on developing testing methods and effective formulas for the evolving psychedelics space. Health Canada licences, scientific expertise, and new technologies facilitate ongoing innovation, and high-throughput contract services generate established revenue.
Contact the author at jon.hopkins@proactiveinvestors.com