BetterLife is engaged in the development and commercialization of therapeutic pharmaceuticals as well as drug delivery platform technologies
The emerging biotech company issued 5,889,735 special warrants at C$0.50 apiece to fund working capital and general corporate purposes BetterLife Pharma Inc (CSE:BETR) (OTCQB:BETRF) (FRA:NPAT) has closed a private placement offering of special warrants that raised nearly C$3 million to fund working capital and general corporate purposes.
In a statement Wednesday, the emerging biotech company said it issued 5,889,735 special warrants at C$0.50 apiece in the offering led by Mackie Research Capital Corporation, on behalf of a syndicate that included Haywood Securities Inc.
Each special warrant will be exercisable, for no additional consideration at the option of the holder, into one unit with each unit being comprised of one common share and one-half of one common share purchase warrant with an exercise price of $0.60 per warrant share, for a period of 36 months after the closing of the offering.
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BetterLife said all unexercised special warrants will exercise automatically on the day (qualification date) that is the earliest of four months and a day following the closing as well as no later than the third business day after a receipt is issued for the final prospectus.
The company said it will use its reasonable commercial efforts to prepare and file with each of the securities regulatory authorities in each of the provinces of Canada, except Quebec, to obtain a receipt of a preliminary short form prospectus and a final short form prospectus within 40 days from the closing.
In the event that the company has not received a receipt for the final prospectus after such time, BetterLife said each unexercised special warrant will then entitle the holder to get one-and-one-tenth (1.10) unit (instead of one unit) at the end of each additional 30-day period prior to the qualification date and each special warrant will be exercisable for an additional 0.02 of a unit.
The company said it will use commercially reasonable efforts to obtain the necessary approvals to list the common shares, the warrant shares, and common shares issuable on the exercise of the compensation option units on the Canadian Securities Exchange on the qualification date and the date of the issuance of the underlying warrant shares following the qualification date, respectively.
In connection with the offering, the agents received an aggregate cash fee equal to 8% of the gross proceeds. In addition, the company granted the agents non-transferable compensation options equal to 8.% of the total number of special warrants sold under the offering. Each compensation option allows the purchase of an option unit at C$0.50 each for 36 months following closing.
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 tumors to treat specific types of cancer.