PharmAla Biotech Announces Private Placement Offering and Debt Settlement

LOS ANGELES- PharmAla Biotech Holdings Inc. a player in the biotechnology sector specializing in the development of LaNeo™ MDMA and its derivatives, has announced plans for a non-brokered private placement offering aiming to raise up to $750,000. The offering price is set at $0.18 per unit, with each unit comprising one common share and half of a warrant. Each whole warrant enables the purchase of an additional common share at $0.27 during a 36-month period post-closing, subject to potential acceleration under specific market conditions.

Use of Proceeds and Offering Details
The intended use of the net proceeds from this offering includes securing global patent rights, manufacturing, clinical trials, and general corporate purposes. This offering, expected to close by April 18, 2024, is anticipated to be subscribed by a select group of longstanding shareholders. Directors and officers of the company may participate in the offering, which is deemed a related party transaction under Multilateral Instrument 61-101, though exempt from certain formal requirements. Concurrently, PharmAla plans to settle an outstanding debt of $108,000 owed to consultant Aaron Logan through the issuance of 600,000 common shares at the same offering price. Logan, recognized for his significant contributions to the company’s intellectual property strategy and business development, will continue to advise PharmAla post-settlement. This debt settlement is also scheduled to close on April 18, 2024, following all regulatory approvals and compliance with CSE policies.

Both the private placement and debt settlement are subject to standard regulatory stipulations, including a statutory hold period of four months and one day from the issuance date. These strategic financial maneuvers are designed to bolster PharmAla’s capacity for innovation and market presence in the competitive biotech industry.