Revive Therapeutics (CSE: RVV) has upsized the bought deal financing announced last night. Originally pegged at $10.0 million in gross proceeds, the company has now doubled the offering to $20.0 million on the back of strong demand.
The financing will see units of the company sold at a price of $0.50 per unit, with each unit containing one common share and one common share purchase warrant with an exercise price of $0.70, valid for a period of three years.
Warrants issued under the financing also contain an acceleration clause, enabling the company to accelerate the expiry of the warrants should the equity trade above $1.10 for a period of ten days on a volume weighted basis. A 15% over-allotment option has also been granted to the underwriters.
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Proceeds from the financing are to be used for phase 3 clinical trials of the use of Bucillamine in the treatment of COVID-19, as well as phase 1 clinical trials for psilocybin for methamphetamine use disorder. Funding will also be used for other psychedelic formulation development as well as working capital and general corporate purposes.
Revive Therapeutics last traded at $0.60 on the CSE.
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