BetterLife Pharma Inc. (CSE:BETR) (FRA:NPAT) has announced plans for a marketed private placement offering of special warrants of the company for gross proceeds of up to $5 million, with the net proceeds raised to be used for working capital and general corporate purposes.
The emerging biotech company said it has entered into an agreement with Mackie Research Capital Corporation, as lead agent and sole bookrunner on behalf of a syndicate including Haywood Securities, for the marketed private placement offering at an indicative price of $0.90 per special warrant.
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Each special warrant will be exercisable, for no additional consideration at the option of the holder, into one unit of the company with each unit being comprised of one common share of the company and one-half of one common share purchase warrant with an indicative exercise price of $1.10 per warrant share, for a period of 24 months after the closing of the offering.
The company said it has also granted the agents an option to purchase up to 15% of the number of special warrants issued under the offering to cover any over-allotments, exercisable at any time 48 hours prior to the closing.
The agents will receive an aggregate cash fee equal to 8.0% of the gross proceeds from the offering, including in respect of any exercise of the over-allotment option. In addition, the company will grant the agents, on date of closing, non-transferable compensation options equal to 8.0% of the total number of special warrants under the offering. Each compensation option will entitle the holder to purchase one unit at an exercise price equal to the issue price of the special warrants for a period to be determined in the context of the market.
BetterLife Pharma is engaged in the development and commercialization of therapeutic pharmaceuticals as well as drug delivery platform technologies. The group is refining and developing drug candidates from a broad set of complementary interferon-based technologies which have the potential to engage the immune system to fight virus infections, such as the coronavirus disease (COVID-19) and human papillomavirus (HPV), and/or to directly inhibit tumours to treat specific types of cancer.
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