Universal Ibogaine Inc (UI) and capital pool company P Squared Renewables Inc (PSQ) announced that they had brought on board US investment bank Boustead Securities LLC to participate in the closing of their $6 million go-public financing raise.
The offering is part of PSQ’s announced proposed qualifying transaction involving the creation of the Universal Ibogaine and PSQ business combination, and PSQ’s related application for the acceptance of the qualifying transaction by the TSX Venture Exchange.
Boustead, which specializes in early-stage financings, will participate as a placement agent in the PSQ offering and has an option to fund a separate Universal Ibogaine financing. The financing, if undertaken, will accelerate the closing of Universal Ibogaine’s pending acquisition of the Kelburn Clinic, an addiction treatment clinic operating near Winnipeg, Manitoba.
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Boustead Senior Managing Director John Stroh said: “We are excited to assist UI and PSQ in completing this go-public financing and view their plans to become a leader in research into ibogaine-based therapies as potentially transformative for the addiction treatment industry.”
Meanwhile, Universal Ibogaine Chairman Shayne Nyquvest said the company expects to have Boustead as “a long-term, strategic, partner” in its goal of using ibogaine as a treatment for addiction and related mental health illnesses.
“Their network broadens awareness into the US and Europe in alignment with our strategy for accelerated growth. The partnership with Boustead will be a game-changer and an enabler of global access to capital and listings on key exchanges in North America and Europe,” added Nyquvest. “I credit our senior colleague Paul Lathigee with fostering this important relationship.”
As part of the qualifying transaction, PSQ is undertaking a non-brokered private placement financing of subscription receipts which are being offered by 1266855 BC Limited (Subco), a wholly owned subsidiary of PSQ. Subco intends to issue up to 24 million subscription receipts at a price of $0.25 per subscription receipt for aggregate gross proceeds of up to $6 million.
PSQ has received to date, subscription amounts under the offering totaling around $2.5 million. PSQ expects to receive subscription agreements for the remainder of the $6 million offering through the participation of Boustead and its network of strategic advisors, including Westmount Park Investments Inc.
The offering is being completed in connection with the previously announced PSQ, Subco and Universal Ibogaine three-cornered amalgamation, which will result in a reverse take-over of PSQ by Universal Ibogaine. The company said completion of the offering is subject to standard regulatory approvals.
Formed in 2018, Vancouver-based Universal Ibogaine is poised to address the opioid epidemic in North America through proven plant medicine. It plans to undertake clinical development, and subsequently obtain regulatory authorization for the use of ibogaine as an addiction interruption medicine, initially for the treatment of opioid use disorder.
“Following closing of the offering and the qualifying transaction, a clinical trial application is planned to be submitted to Health Canada, with the intent of demonstrating ibogaine safety and efficacy for this purpose,” said the company.
Universal Ibogaine also holds a 20-acre property on an island near San Pedro, Belize, and is reviewing the idea of having a joint venture partner finance and develop a potential addiction treatment facility, or other future project on the site.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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