Psyched Wellness (CSE: PSYC) has closed its previously announced private placement. The company managed to raise an impressive $6.6 million under the financing, a sizeable increase from the initial $3.0 million that was to be raised under the financing.
The offering saw a total of 21.3 million units of the company sold at a price of $0.31 per unit. Each unit consists of one common share and one common share purchase warrant, with each warrant valid for a period of three years from the date of issuance with an exercise price of $0.43 per share.
Warrants issued under the offering are also subject to an acceleration clause, whereby the company can accelerate the expiry if the equity trades above $0.70 for a period of five days on a volume weighted basis.
Proceeds from the offering are to be used to fully fund the pre-clinical trials of the firms proprietary amanita muscaria extract, known as AME-1, as well as to continue researching the compound and its potential for people suffering from mental and physical health issues. Proceeds are also to be used for general corporate purposes.
Psyched Wellness last traded at $0.55 on the CSE.
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