Financing led by premier psychedelics focused investment fund Negev Capital
VANCOUVER, BC, July 19, 2023 /CNW/ – Filament Health Corp. (OTCQB: FLHLF) (NEO: FH) (FSE: 7QS) (“Filament” or the “Company“), a clinical‐stage natural psychedelic drug development company, today announced that it intends to complete, subject to regulatory approval, a non-brokered private placement for gross proceeds of up to C$2,000,000 (the “Offering“). The Offering will be led by Negev Capital, a psychedelic medical intervention investment fund.
“Negev Capital is pleased to support Filament, among the most compelling early‐stage companies in the psychedelic space,” said Ken Belotsky, Partner at Negev Capital. “Filament’s strategy of thoughtfully developing innovative psychedelic treatments could positively impact millions of lives. With vertically integrated manufacturing capabilities creating standardized, botanical drug candidates, Filament is poised to succeed.”
“We are thrilled to further our relationship with Negev to continue to advance Filament’s drug development platform,” said Benjamin Lightburn, Chief Executive Officer and Co‐Founder at Filament.
The Offering is a non-brokered private placement of up to 22,222,222 units (the “Units“) at a price of C$0.09 per Unit (the “Issue Price“), or other amount approved by the NEO Exchange, for gross proceeds of up to C$2,000,000. Each Unit will consist of one common share of the Company (a “Common Share“) and one common share purchase warrant (the “Warrants“). Each Warrant will be exercisable to acquire one Common Share for a period of 36 months following the closing date of the Offering at an exercise price of C$0.117, representing a 30% premium to the Issue Price, or other amount approved by the NEO Exchange.
Negev Capital, a psychedelic medical intervention investment fund that has made over 20 investments to date, is the lead investor of the Offering. Net proceeds from the Offering are expected to be used to recruit patients and initiate the Company’s Phase 2 Methamphetamine Use Disorder clinical trial which has already received FDA approval, as well as other general corporate purposes.
The Offering is subject to the approval of the NEO Exchange and the securities issued thereunder will be subject to a four month hold period under securities laws. The securities offered in the Offering have not been, nor will they be, registered under 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.
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 completion of the Offering; the terms of the Offering; the terms of the Warrants; and the use of net 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 status of patent applications and the ability to secure patents. 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.