Psyched Wellness (CSE: PSYC) has increased the size of its bought deal private placement as a result of strong demand from shareholders. Previously pegged at $3.0 million, the financing has now nearly doubled to that of $5.5 million.
The financing, lead by Canaccord Genuity, will see units of the company sold at a price of $0.31 per unit. Each unit contains one common share and one common share purchase warrant, with each warrant having an exercise price of $0.43 per common share and an expiry of three years from the date of issue.
Warrants issued under the financing are also subject to an acceleration clause, enabling the company to accelerate the expiry of the warrant if the equity trades above $0.70 for a period of five trading days on a volume weighted basis. An over-allotment option has also been granted to the underwriters.
Net proceeds from the financing are to be used to fully fund pre-clinical trials of the firms amanita muscaria mushroom extract, and to further scientific research on the formulation. Proceeds are also to be spent on general corporate purposes.
Psyched Wellness last traded at $0.37 on the CSE.
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