PharmaDrug Inc has announced the closing of the first tranche of a non-brokered private placement which saw the company issue 7 million units at a price of $0.04 each for aggregate gross proceeds of $280,000.
The company said it intends to use the net proceeds from the offering to assist in the production of pharmaceutical-grade cepharanthine to be used in Phase I and Phase II clinical trials and for general working capital.
Each unit in the offering consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of $0.05 for a period of 24 months from the closing of the offering.
READ: PharmaDrug advances its glaucoma research program with selection of lead DMT analog
In connection with the closing of the first tranche, the company paid a finder a cash commission of $1,600 and issued an aggregate of 40,000 broker warrants. Each broker warrant entitles the finder to purchase one common share of the company at a price of $0.04 for a period of twenty-four months from the closing of the first tranche.
The securities issued via the offering are subject to a statutory four-month and one-day hold period.
Daniel Cohen, the company's chairman and chief executive officer purchased or acquired direction and control over an aggregate of 1,250,000 units under the first tranche.
PharmaDrug is a specialty pharmaceutical company focused on the research, development and commercialization of controlled substances and natural medicines such as psychedelics, cannabis and naturally-derived approved drugs.
The company owns 100% of Pharmadrug Production GmbH, a German medical cannabis distributor, with a Schedule I European Union narcotics license and German EuGMP certification allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the European Union.
It also owns 100% of Sairiyo Therapeutics, a biotech company that specializes in researching and reformulating established natural medicines with a goal of bringing them through clinical trials and the associated regulatory approval process in the US and Europe.
Sairiyo is currently developing its patented reformulation of cepharanthine, a drug that has shown substantial third-party validated potential for the treatment of infectious disease and rare cancers. Sairiyo is also conducting R&D in the psychedelics space for the treatment of non-neuropsychiatric conditions.
The company also owns 100% of Super Smart, a company building a vertically integrated retail business with the goal to elevate the use of functional mushrooms as natural-based medicines.
Contact the author at jon.hopkins@proactiveinvestors.com