The health-sciences company said in a statement that it plans to use net proceeds to fund research and development programs and as general working capital.
A total of 6.1 million units were issued at a price of C$0.05 per unit for gross proceeds of C$305,000. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional share at a price of C$0.08 per share for a period of 24 months, expiring February 11, 2021.
READ: PreveCeutical explores partnerships with pharma and biotech companies for co-development of Sol-Gel
If the stock’s closing price is at least C$0.12 per share for a minimum of 10 consecutive trading days starting four months and one day after the closing of the financing, the company may accelerate the expiration of the warrants.
Shares fetched C$0.05 in Tuesday’s Canadian trading. They traded at US$0.04 on the OTC Markets.
The Vancouver-based company added that it has drawn down an additional C$205,000 from credit facilities.
PreveCeutical’s work includes development of a dual gene therapy for curative and prevention therapies for diabetes and obesity and its Sol-gel platform for nose-to-brain delivery of medical compounds including cannabinoids.
Last month, the company said it plans to kick off exploratory discussions about potential partnerships with pharmaceutical and biotech companies to co-develop Sol-Gel.
Contact Dennis Fitzgerald at [email protected]