Levitee Labs (CSE:LVT) Inc, a wellness company with an established portfolio of cash-flowing wellness assets, has revealed that it is proposing to complete a non-brokered private placement of up to 15 million units at a price of C$0.20 each for aggregate gross proceeds of up to C$3 million.
The Vancouver, British Columbia-based company said the proceeds will be used for “organic and inorganic growth initiatives” and to refocus the company on clinical healthcare with an emphasis on addiction services.
“We are excited to move forward with our strategic growth objectives,” Levitee CEO Pouya Farmand said in a statement. “Through this financing we will have the balance sheet strength to further grow the company and focus on our mission to bring innovative treatments to addiction services patients.”
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Levitee Labs (CSE:LVT) said each offered unit will be composed of one common share and one common share purchase warrant. Each warrant will be exercisable at C$0.40 per share for a period of 24 months from the date of issuance.
The company will pay a finder's fee of 8% on the gross proceeds of the private placement from subscribers introduced by certain finders, and will issue such number of finder's warrants as is equal to 8% of the units sold to subscribers introduced by certain finders.
Moreover, each finder's warrant will entitle the holder to buy one common share of the company at a price of C$0.40 per finder's warrant share for a period of 24 months from the date of issuance.
In addition, all securities issued under the private placement will be subject to a hold period of four months and one day. The offered units are expected to be eligible for registered accounts.
The private placement is subject to approval from the Canadian Securities Exchange, said the company.
Levitee Labs is aiming to transform mental health and addiction treatments through the integration of psychedelic medicines and therapies. The company’s current portfolio of assets includes Levitee Clinics, a group of five clinics, focusing on addiction and pain treatment in Alberta. It also owns Levitee Pharmacies which includes three pharmacies in Alberta specialized in filling prescriptions for patients with substance use disorders, mental health conditions, and chronic pain.
In addition, it owns BlockMD, the first technology company in Alberta to receive provincial approval for electronic prescriptions in the addiction treatment space; and Earth Circle Organics, a direct-to-consumer and wholesaler of supplements and superfood products with over 180 stock keeping units (SKUs) in its product lineup across three brands.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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