Revive Therapeutics (CSE: RVV) this morning announced the closing of its bought deal financing. Originally announced at a figure of $10.0 million, strong demand lead to it being doubled to $20.0 million, before closing out today at $23.0 million with the exercise of the over-allotment option.
The financing saw units of the company sold at a price of $0.50 per each, with each unit containing one common share and one common share purchase warrant. Each warrant is valid for a period of three years and contains an exercise price of $0.70 per share.
An acceleration clause is also present on the warrant, enabling the company to accelerate the expiry date in the event that the equity trades above $1.10 for ten consecutive days on a volume weighted basis.
Net proceeds from the offering are to be used for phase 3 clinical costs for its study on the use of Bucillamine in the treatment of mild to moderate COVID-19, phase 1 clinical costs for the firms psilocybin for methamphetamine use disorder study, and other psychedelic formulation development work, as well as working capital and general corporate purposes.
Revive Therapeutics last traded at $0.65 on the CSE.
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