BetterLife Pharma Inc (CSE:BETR, OTCQB:BETRF) has announced that its subsidiary, Altum Pharmaceuticals Inc has obtained non-dilutive financing from a key investor.
The subsidiary has inked an agreement with a European investor group to purchase up to US$5 million Altum shares by way of a non-brokered financing in tranches that will start in January 2022.
Once the financing is completed, the investor group will own nearly 12.5% of Altum’s shares.
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“Our team is working diligently to advance the pre-clinical and clinical programs of Altum that are of extreme importance in providing potential treatment for COVID-19 and its variants,” BetterLife CEO Ahmad Doroudian said in a statement. “This funding will provide non-dilutive financing which will allow us to further our goals of achieving significant milestones in the first quarter of 2022.”
BetterLife said it has also formed a special committee to explore strategic options, including a possible spin-off and listing of Altum on a national exchange in the US.
According to BetterLife, shareholders of BetterLife will receive shares of Altum directly through a dividend or other similar form of distribution – a move that CEO Doroudian said will allow investors to be a part of the growth of both companies, while allowing BetterLife and Altum to focus on their respective business segments.
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