PreveCeutical Medical Inc (CSE:PREV, OTCQB:PRVCF) is set to raise up to C$4mln for its research and development (R&D) programs and for general working capital.
The health sciences group has arranged a private placement of up to 16mln units at 25 cents each for gross proceeds of up to C$4mln.
Each unit consists of one share and one warrant, with each warrant entitling the holder to buy a share for 50 cents for 24 months from closing.
The group also said that its 2018 annual general and special meeting has been set for May 11 this year in Vancouver.
Last month, the firm received the first shipment of dried cannabis flower and oils from pot giant Aurora Cannabis, which means soluble gel (Sol-gel) delivery testing can now start.
In March, the firm, in a major milestone, had received the key permits to allow this material to be imported into Australia by the cannabis major.
It will be used for the group's research led by Preveceutical's chief research officer Dr Harendra Parekh at the University of Queensland.
The group currently has five research and development programs, including dual gene therapy for curative and prevention therapies for diabetes and obesity, a sol-gel platform for nose to brain delivery of medical compounds including cannabinoids.