ASX-listed Creso Pharma has secured firm commitments to raise A$2 million via a share placement.
Funds have been earmarked for sales and marketing initiatives in the US, the completion of a phase II clinical trial testing the efficacy of psilocybin on treatment-resistant Post Traumatic Stress Disorder (PTSD) and M&A opportunities.
Creso will issue around 133 million new shares to institutional, sophisticated and professional investors at $0.015 cents per share, representing a 16.33% discount on its closing price of $0.018 cents on February 14.
The placement includes a $100,000 commitment from CEO and managing director William Lay, subject to shareholder approval at a future general meeting.
Investors will receive two options for every placement share subscribed for and issued, including one free-attaching listed option exercisable at eight cents and one free-attaching unlisted option exercisable at three cents, also subject to shareholder approval.
Lay said the company received strong support from a range of investors for the placement during a “critical growth period” for Creso.
He added: “The company continues to achieve record revenue growth and has a number of initiatives underway which are expected to unlock considerable value for shareholders.”
The firm told the ASX the completion of the placement followed record revenue growth of 44% to $8.95m in FY22 and a “considerable reduction in net operating expenditure”.
Shares closed on Friday (February 17) at $0.017 cents.
