Closing of CAD$10 Million Private Placement TORONTO, Sept. 28, 2021 (GLOBE NEWSWIRE) -- PharmaTher Holdings Ltd. (the “Company” or “PharmaTher”) (CSE: PHRM)(OTCQB: PHRRF), a clinical-stage psychedelics biotech company, is pleased to announce that it has closed its previously announced private placement with institutional investors of its common shares (“Common Shares”) and warrants to purchase common shares (“Warrants”) for gross proceeds of CAD$10 million (the “Private Placement”). Pursuant to the Private Placement, the Company issued 15,625,000 Common Shares and Warrants to purchase 15,625,000 Common Shares at a purchase price of CAD$0.64 per Common Share and associated Warrant. Each Warrant will entitle the holder to purchase one Common Share at an exercise price of CAD$0.80 per Common Share for a period of five years following the closing date of the Private Placement.
H.C. Wainwright & Co. acted as the exclusive placement agent for the Private Placement.
The Company expects to use the net proceeds of the Private Placement for the advancement of its microneedle patch program, its proprietary ketamine product, and for general corporate purposes.
H.C. Wainwright & Co., LLC received (i) a cash commission equal to 8% of the gross proceeds of the Private Placement and (ii) 1,250,000 placement agent warrants (the “Agent Warrants”). Each Agent Warrant entitles the holder to purchase one Common Share at an exercise price of CAD$0.80 per Common Share for a period of five years following the closing date of the Private Placement.
No securities were offered or sold to Canadian residents in connection with the Private Placement. The securities issued under the Private Placement are subject to resale restrictions in the United States under applicable U.S. federal and state securities laws with no resale restrictions in Canada.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the securities may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news 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 jurisdiction in which such offer, solicitation or sale would be unlawful.
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