Canadian Financing: PharmAla Biotech Offers Non-Brokered Private Placement Up To $3.76M

MDXX-class molecules biotech company PharmAla Biotech Holdings Inc. PMBHF has announced a non-brokered private placement of a minimum of 3.3 million units and a maximum of 16.6 million of its units at a price of $0.22 (CA$0.30) each, corresponding to aggregate gross proceeds of minimum $752,300 (CA$1 million,) and maximum $3.76 (CA$5 million.) 

Expected to be completed in multiple closings and with final closing before July 27, the new offer will be available for Canadian residents -excluding Quebec- and other qualifying jurisdictions, pursuant to Part 5A of the country’s 45-106 Prospectus Exemptions. The issued securities will not be subject to any statutory hold period, as stated by the applicable Canadian securities laws. 

The offering will consist of one PharmAla common share and one-half common share purchase warrant. Each whole warrant entitles its holder to acquire one common share for a period of 24 months following the closing of the offering. 

Should the common shares’ average trading price exceed $0.507 each for 20 consecutive trading days during the period following 24 months post-closing date, PharmAla would be entitled to accelerate the warrants’ expiry date to the 30th day after the news is announced.

The company intends to use the net proceeds to increase its MDMA and psilocybin inventory for future sales in Australia and outer, Phase 2 clinical trials of its patented next-gen molecules, and general working capital purposes. 

New Research Grant For AI-Powered Drug Research

On June 9, PharmAla announced it received a research grant from the Ontario Centre for Innovation (OCI) for the advancement of the company’s in-silico modeling partnership with the University of Windsor.

"In-silico modeling is a crucial element of drug discovery, allowing for faster and more accurate prediction of which molecules will ‘hit’ our very specific targets,” explained the company’s research VP Dr. Harpreet Kaur, who added the grant is a 1:1 match to PharmAla’s own investment in the project, which equates to $37,615 (CA$50,000.)

In-silico modeling, or “AI Drug Discovery,” defines the use of pharmacological information in creating computational models or simulations to make predictions and suggest hypotheses toward advances in medicine and therapeutics. Despite its success in Phase 2 and 3 trials, racemic MDMA has significant side effects and further, considering its potential approval in 2024 by the FDA, developing a drug with a reduced toxicology profile is the current aim.

PharmAla believes in doing so through in-silico modeling and thus is actively pursuing drug R&D toward identifying novel MDMA analogs with a better safety profile.

CEO Nick Kadysh is certain that the new grant will allow PharmAla to “bolster the funnel” of its drug pipeline and “develop valuable IP with non-dilutive funding.”

Photo: Benzinga edit with photo by Pexels.