The firm secured a 10% interest rate on the new financing.
Vancouver-based psychedelics firm Filament Health Corp. (OTCQB: FLHLF) (NEO: FH) (FSE: 7QS) secured $4.3 million in financing with which to continue operations, the company announced Wednesday, with an option to obtain an additional $11.1 million.
The funding was delivered by Helena Global Investment Opportunities 1 Ltd. through a securities purchase agreement that calls for Helena to issue up to $14.4 million in secured convertible notes for Filament. The deal is slated to deliver $4.3 million in cash to Filament upon closing, which is expected to happen when Filament also closes its merger with Jupiter Acquisition Corp. (NASDAQ: JAQC), after which the new company will be rebranded as TopCo.
The merger with Jupiter received approval from U.S. stock regulators in mid-November, and it’s still unclear when that deal may be finalized.
The financing comes with a 10% annual interest rate and will carry a term of 12 months.
In addition, Filament announced a separate fundraising round has been completed for C$900,000, or about $662,000, and the company plans to raise an additional $900,000 through the issuance of more unsecured convertible notes “to certain investors who are affiliates or advisors of Jupiter and Filament,” according to a press release.
Filament CEO Ben Lightburn said the new financing will give the company momentum heading into its attempt to uplist to the Nasdaq, which is the ultimate goal of the Jupiter merger.
“These financings mark significant de-risking milestones, propelling us toward the execution of the proposed business combination and our anticipated listing on Nasdaq. At the same time, they greatly reinforce our capacity to move forward with internal operational and drug development programs,” Lightburn said in a statement.
During the most recent quarter that ended Sept. 30, Filament posted a C$1.3 million net loss and has lost more than C$4 million for the first nine months of the calendar year, according to the company’s most recent financial filing.
Read More Feedzy