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Revive Therapeutics doubles 'bought-deal offering agreement with Canaccord Genuity and Leede Jones Gable for gross proceeds of $20M

Published: 08:20 21 Jan 2021 EST

Revive Therapeutics -
Revive is a life sciences company focused on the research and development of therapeutics for infectious diseases and rare disorders

Revive Therapeutics Ltd. (CSE:RVV) said it has upsized its 'bought-deal offering agreement with Canaccord Genuity Corp. and Leede Jones Gable Inc. announced earlier on Thursday, doubling the offering to 40,000,000 units in the company at the same price of $0.50 each to raise gross proceeds of $20 million.

The specialty life sciences company, which is focused on the research and development of therapeutics for medical needs and rare disorders, said the net proceeds of the offering will be used for Phase 3 ‎clinical costs for Bucillamine for coronavirus (COVID-19), Phase 1 clinical ‎costs for Psilocybin for methamphetamine use disorder ‎study, and other Psychedelic formulation development work as well as working capital and general corporate purposes. ‎

READ: Revive Therapeutics announces research collaboration with North Carolina State University to develop a novel biosynthetic version of psilocybin

Each equity unit will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of $0.70 at any time up to 36 months following closing. The expiry of the warrants may be accelerated by the company at any time prior to the expiry date o if the volume-weighted average price of the group's common shares on the Canadian Securities Exchange (CSE) is greater than $1.10 for any 10 consecutive trading days.

The company said it has granted the underwriters an over-allotment option exercisable in part or in whole at the underwriter's sole discretion, at any time until 30 days following the closing, to purchase up to that number of additional equity units, common shares or warrants, or any combination thereof, as is equal to 15% of the aggregate number of equity units sold in the offering.

The underwriters will be paid a cash commission equal to 7.0% of the aggregate gross proceeds of the offering payable in cash or equity units, or any combination thereof, at the option of the ‎underwriters, and warrants exercisable at any time up to 36 months following closing to acquire that number of equity units which is equal to 7.0% of the aggregate number of units issued under the offering, at an exercise price of $0.50. Additionally, the company will pay the underwriter's a corporate finance fee payable in units equal to 2.0% of the aggregate number issued under the offering.

Additionally, the company intends to pay Hampton ‎Securities Limited a cash fee equal to 1.0% of the aggregate gross proceeds of the offering and warrants exercisable at any time up to 36 months following closing to acquire that number of equity units which is equal to 1.0% of the aggregate number of units issued under the offering, in consideration of a waiver of their right of first refusal.

The closing of the Offering is expected to occur on or about the week of February 8, 2021, and is subject to the company receiving all necessary regulatory approvals, including the approval of the CSE.

Revive is a life sciences company focused on the research and development of therapeutics for infectious diseases and rare disorders, and it is prioritizing drug development efforts to take advantage of several regulatory incentives awarded by the US Food and Drug Administration (FDA) such as Orphan Drug, Fast Track, Breakthrough Therapy and Rare Pediatric Disease designations.

Currently, the company is exploring the use of Bucillamine for the potential treatment of infectious diseases, with an initial focus on severe influenza and COVID-19. With its recent acquisition of Psilocin Pharma Corp., Revive is advancing the development of Psilocybin-based therapeutics in various diseases and disorders.

The company's cannabinoid pharmaceutical portfolio focuses on rare inflammatory diseases and it was granted FDA orphan drug status designation for the use of Cannabidiol (CBD) to treat autoimmune hepatitis (liver disease) and to treat ischemia and reperfusion injury from organ transplantation.

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Contact the author at jon.hopkins@proactiveinvestors.com

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