BetterLife Pharma Inc (CSE:BETR) (OTCQB:BETRF) (FRA:NPAU) has announced a $5.5 million bought-deal public offering.
In a statement, the company said the net proceeds from the offering will be used for working capital and general corporate purposes.
Under the financing scheme, BetterLife entered into an agreement with Research Capital Corporation as the lead underwriter and sole bookrunner on behalf of a syndicate that has agreed to purchase 13,750,000 units at $0.40 each for gross proceeds of $5.5 million.
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Each unit will consist of one common share and one purchase warrant. Each warrant entitles the holder to purchase one share at $0.50 each at any time up to 36 months from the closing of the offering.
BetterLife also said it has granted to the underwriter an over-allotment option to increase the offering size by up to an additional number of units that in total would be equal to 15% of the total number of units issued under the offering, to cover over-allotments, if any, and for market stabilization purposes. The option is exercisable at any time and from time to time up to 30 days following the closing of the offering.
The closing is expected to occur on or about May 28 and is subject to the company receiving all necessary regulatory approvals.
BetterLife, based in Vancouver, British Columbia, is a life sciences company engaged in the development of next-generation psychedelic products for the treatment of mental disorders.
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