FILAMENT HEALTH ANNOUNCES UPSIZING AND CLOSING OF $2,500,000 NON-BROKERED PRIVATE PLACEMENT FINANCING
Financing led by psychedelic investment fund Negev Capital
VANCOUVER, BC, July 24, 2023 /CNW/ - Filament Health Corp. (OTCQB: FLHLF) (NEO: FH) (FSE: 7QS) ("Filament" or the "Company"), a clinical-stage natural psychedelic drug development company, is pleased to announce an increase in the size of its previously announced private placement offering and that, further to its news release dated July 19, 2023, the Company has closed on the private placement financing for gross proceeds of C$2,500,000 (the "Offering").
The Offering was completed by way of non-brokered private placement of 27,777,781 units (the "Units") at a price of $0.09 per Unit for gross proceeds of C$2,500,000.
Negev Capital, a psychedelic medical intervention investment fund that has made over 25 investments to date, was lead investor of the Offering. The net proceeds of the Offering will be used for the initiation of patient recruitment for the Company's Phase 2 Methamphetamine Use Disorder clinical trial that has already received FDA approval as well as other general corporate purposes.
The Company upsized the Offering due to strong interest from strategic parties, led by William Panenka, MD, FRCPC, Founder and CEO of Translational Life Sciences Inc. ("TLS"). Filament has collaborated with TLS on various psychedelic mushroom research projects. Dr. Panenka is a dual-certified neurologist and psychiatrist, and an Associate Professor in the Department of Psychiatry at the University of British Columbia (UBC). Dr. Panenka did a post doctoral fellowship at UBC and Harvard University, and maintains an internationally recognized research program in brain injury, mental health and addictions.
Each Unit consisted of one Common Share and one common share purchase warrant (the "Warrants") of the Company with each Warrant entitling the holder thereof to purchase one additional Common Share at an exercise price of $0.117, representing a 30% premium to the Issue Price for a period of 36 months from the date of issuance. All Common Shares and Warrants issued under the Offering are subject to a hold period of four months and one day from the date of issuance.
The offered securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and may not be offered or sold to, or for the account or benefit of, any person in the United States or any "U.S person", as such term is defined in Regulation S under the Securities Act, absent registration or an applicable exemption from registration requirements. Offers and sales in the United States will be limited to institutional accredited investors. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
Filament is a natural psychedelic drug development company focused on the treatment of substance use disorders. Filament's proprietary technology platform enables the discovery and delivery of botanical psychedelic medicines for clinical development. The Company is currently generating revenue by out-licensing its lead drug candidate, PEX010, to commercial partners. PEX010 is standardized to provide a precise dose of botanical psilocybin per oral capsule, and is currently being administered in phase 1 and 2 human clinical trials approved by U.S. Food and Drug Administration ("FDA") and Health Canada. It is currently being studied in 15 clinical trials in North America and Europe via Filament's network of academic and research institutions for conditions including alcohol use disorder, treatment resistant depression, opioid tapering, and chronic pain. All of the trials are being conducted under the authorization of the applicable governing authority, including, but not limited to, the US Food and Drug Administration, Health Canada and European Medicines Agency. The Company believes that, as a botanical drug, PEX010 offers intellectual property benefits versus synthetic drugs due to its complex active pharmaceutical ingredient, as well as a more rapid path into clinical development. Filament is actively pursuing early access schemes around the world and has supplied dozens of Canadian patients via the Health Canada Special Access Program.
Learn more at www.filament.health and on Twitter, Instagram and LinkedIn.
Certain statements and information contained herein may constitute "forward-looking statements" and "forward-looking information," respectively, under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information. Forward-looking statements herein include, but are not limited to, statements regarding the exercise of the Warrants and the use of proceeds of the Offering. The forward-looking statements are not historical facts, but reflect the current expectations of management of Filament regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. Forward-looking statements regarding the Company are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of Filament to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including completion of the Offering. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Filament will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE Filament Health Corp.
MEDIA RELATIONS: Anna Cordon, Director of Communications, [email protected]; INVESTOR RELATIONS: [email protected]
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