Braxia Scientific Corp, a medical research company with clinics providing novel psychedelic treatments for depression, said it has closed a previously announced private placement of its common shares and warrants with institutional investors for gross proceeds of approximately C$3 million.
The Toronto-based company, which is primarily focused on owning and operating multidisciplinary clinics, said the net proceeds of the private placement will be used for expansion of clinics, certain strategic investments, and for general working capital purposes.
Under the private placement, the Toronto-based company said it issued 30 million common shares, or common share equivalents, together with warrants to buy up to an aggregate of 30 million common shares at a purchase price of C$0.10 each. The firm noted that each warrant will entitle the holder to one common share at an exercise price of C$0.125 per common share for a period of five years following the issuance date.
Each common share equivalent consists of one pre-funded warrant, which is exercisable for one common share at an exercise price of C$0.0001 per common share and will expire when exercised in full. The company explained that pre-funded warrants were issued to those buyers of shares in the private placement that would result in them beneficially owning over 9.99% of the outstanding common shares following the private placement.
HC Wainwright & Co. acted as the exclusive placement agent and received a cash fee of C$210,000 and issued 2,100,000 broker warrants to its nominess. Each broker warrant will entitle the holder to buy one common share at an exercise price of C$0.125 per share for a period of five years following the issuance date.
No securities were offered or sold to Canadian residents in connection with the private placement, said the company.
Braxia provides treatment for mental health disorders, and research activities related to discovering novel drugs and delivery methods. It seeks to develop ketamine, 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 major depressive disorder and other depression located in Mississauga, Toronto, Ottawa, and Montreal.
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