Braxia Scientific Corp said it has entered into a securities purchase agreement with institutional investors for a private placement of its common shares and warrants for gross proceeds of approximately C$3 million.
Under the private placement, the company will issue 30,000,000 common shares (or common share equivalents) together with warrants to purchase up to an aggregate of 30,000,000 common shares at a purchase price of C$0.10 each. Each warrant will entitle the holder to purchase one common share at an exercise price of C$0.125 per common share for a period of five years following the issuance date.
The company said the net proceeds of the private placement will be used for the expansion of clinics, certain strategic investments and general working capital purposes.
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HC Wainwright & Co. is acting as the exclusive placement agent for the private placement which is expected to close on or about January 10, 2022, subject to satisfaction of customary closing conditions. No securities were offered or sold to Canadian residents in connection with the private placement
Braxia Scientific is a medical research company with clinics that provide innovative ketamine treatments for persons with depression and related disorders. Through its medical solutions, Braxia aims to reduce the illness burden of brain-based mental disorders such as major depressive disorder among others.
The company is primarily focused on owning and operating multidisciplinary clinics, providing treatment for mental health disorders, and research activities related to discovering and commercializing novel drugs and delivery methods.
Braxia seeks to develop ketamine and derivatives and other psychedelic products from its IP development platform. Through its wholly-owned subsidiary, the Canadian Rapid Treatment Center of Excellence Inc, the company currently operates multidisciplinary community-based clinics offering rapid-acting treatments for depression located in Mississauga, Toronto, Ottawa, and Montreal.
Contact the author at jon.hopkins@proactiveinvestors.com