Net proceeds will be used for the expansion of the group's biosciences division, said the firm
Inc () (OTCMKTS:FSDDF), the cannabinoid treatment focused group, said it has closed the second tranche of a previously announced placing, raising a total of nearly C$4.6 million gross and is planning to close a third tranche.
Net proceeds will be used for the expansion of the group's biosciences division, including the research and development of PP-101 (micro-palmitoylethanolamide [micro-PEA] plus pregabalin).
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This is the firm's pre-clinical drug candidate for the treatment of symptoms related to fibromyalgia - a disorder characterized by widespread musculoskeletal pain accompanied by fatigue, sleep, memory and mood issues.
The funds will also be used for general corporate purposes, including working capital, potential investments and acquisitions, the Cobourg, Ontario based company said in a statement Monday.
The firm said it had now raised total gross proceeds of C$$4,596,285 from investors, including members of senior management and its board, issuing 228,671 class B subordinate voting shares.
FSD had expected to close the placing by October 31 this year, however, it elected to extend the financing to accommodate potential additional interest from institutional grade investors.
It said it now expects to close a third and final tranche by December 6 this year. The terms remain the same but the price per share has been adjusted to C$20.10 (previously C$0.10) each due to the 201:1 share consolidation.
The firm is focused on the research and development of cannabinoid-based treatments for several central nervous system disorders including fibromyalgia, and irritable bowel syndrome. It also grows medical-grade cannabis at its 25,000 square foot facility in Ontario.
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