Revive Therapeutics Ltd. (CSE:RVV) (OTCMKTS:RVVTF) said it has closed its previously announced bought deal prospectus offering of 46,000,000 units at a price of $0.50 per unit for aggregate gross proceeds of $23 million, which includes the exercise in full of the 15% over-allotment option.
The speciality life sciences company, which is focused on the research and development of therapeutics for medical needs and rare disorders, said it intends to use the net proceeds for Phase 3 clinical costs for Bucillamine for coronavirus (COVID-19), Phase 1 clinical costs for Psilocybin for methamphetamine use disorder study, and other Psychedelic formulation development work as well as working capital and general corporate purposes.
Revive noted that the syndicate of underwriters was co-led by Canaccord Genuity and Leede Jones Gable and the units were offered and sold by way of a short form prospectus filed with the securities commissions in each of the provinces of Canada, other than Québec.
Each unit is comprised of one common share of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at an exercise price of $0.70 each until February 12, 2024. If the daily volume-weighted average trading price of Revive's common shares on the Canadian Securities Exchange is greater than $1.10 for the preceding 10 consecutive trading days, the company may accelerate the expiry date of the warrants to a date that is at least 30 trading days following the date on which the company issues a press release announcing the reduced warrant term.
In consideration for the services provided in connection with the offering, the company paid the underwriters a cash commission equal to 7.0% of the aggregate gross proceeds of the offering and issued to them warrants exercisable at any time up to February 12, 2024, to acquire that number of units which is equal to 7.0% of the aggregate number of units issued under the offering, at an exercise price of $0.50 per unit. Additionally, the company paid the underwriters a corporate finance fee in units equal to 2.0% of the aggregate number of units issued under the offering.
Revive is prioritizing drug development efforts to take advantage of several regulatory incentives awarded by the US Food and Drug Administration (FDA) such as Orphan Drug, Fast Track, Breakthrough Therapy and Rare Pediatric Disease designations.
Currently, the company is exploring the use of Bucillamine for the potential treatment of infectious diseases, with an initial focus on severe influenza and COVID-19.
With its acquisition of Psilocin Pharma Corp., Revive is advancing the development of Psilocybin-based therapeutics in various diseases and disorders.
The company’s cannabinoid pharmaceutical portfolio focuses on rare inflammatory diseases and it was granted FDA orphan drug status designation for the use of Cannabidiol (CBD) to treat autoimmune hepatitis (liver disease) and to treat ischemia and reperfusion injury from organ transplantation.
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