Albert Labs International Corp (CSE:ABRT) said it has arranged a non-brokered private placement for gross proceeds of up to $3 million, with the first tranche raised at a price of 8 cents per unit, adding that intermediate closings may take place as determined by the company.
Gross proceeds raised from the offering will be used for pharmacokinetic and toxicology studies to advance the company's primary drug target, the natural psilocybin-based KRN-101 toward its real-world evidence trial for regulatory approval in the United Kingdom and investigational new drug filing in the United States, Albert Labs said. The proceeds will also be used for general and administrative expenses and any financing fees.
Each unit in the placement comprises one common share and one-half of one whole common share purchase warrant with each whole warrant entitling the holder to purchase one additional common share of the company at a price of 12 cents per share for a period of 12 months from the date of issuance.
READ: Albert Labs contracts iNGENū to conduct first in-human study of drug KRN-101
In the event that the company's common shares have a closing price on the Canadian Securities Exchange of greater than 15 cents per common share for a period of 10 consecutive trading days, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof and, in such case, the warrants will expire on the 30th day after the date on which such notice is given to the holder by the company.
All securities issued in connection with the offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation.
Albert Labs is a biopharmaceutical drug discovery company, focused on gaining regulatory approval for active compounds in the treatment of mental health, and providing rapid access to effective prescription medicines for people suffering from mental health disorders.
Its team of experts leverage advanced culture technology and natural extraction, coupled with a comprehensive regulatory approach, to accelerate the development of mental health drugs, for which the needs are both urgent and unmet. Albert Labs looks to develop solutions through an approved, fast-track clinical pathway focusing on real-world evidence. These studies are an increasingly recognized clinical route, heavily used in oncology and recently, in the successful development of COVID-19 vaccines.
Through collaborations with research institutions, hospital centres and government agencies, Albert Labs uses existing clinical infrastructure to deliver and improve patient access to its treatment. Albert Labs' first drug target, KRN-101, is a potential solution for cancer-related anxiety, a market of over 15 million people with roughly one million new sufferers each year. From this initial focus, Albert Labs will address broader mental health concerns, reported to affect over a billion people worldwide.
The company's goal is to deliver effective medicines to those who suffer with mental health concerns in the shortest possible time without compromising safety and/or quality, while also providing significant returns to shareholders.
Contact the author at jon.hopkins@proactiveinvestors.com