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PreveCeutical Medical closes oversubscribed placing and brings in C$6.54mln

The funds were earmarked for research and development (R&D) programmes and for general working capital purposes
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In all, around 130.8mln units were issued at $0.05 per unit for gross proceeds of $6,539,987.50

Health sciences company PreveCeutical Medical Inc (CSE:PREV) has closed its oversubscribed private placing, and raised C$6.54mln (gross).

In all, around 130.8mln units were issued at $0.05 per unit for gross proceeds of $6,539,987.50.

READ: Preveceutical to increase private placement to C$8mln due to investor demand

The funds were earmarked for research and development (R&D) programmes and for general working capital purposes.

"I am very pleased to announce this oversubscribed placement due to investor demand in our financing and see this as a strong endorsement of the quality of our research programmes and management team," said Stephen Van Deventer, chairman, chief executive and president of the group said.

"In keeping with our vision of becoming a global preventive health care company, PreveCeutical is continuing to meet key milestones with our portfolio of research and development programmes that will boost shareholder value."

Each unit consisted of one share and one share purchase warrant, with each warrant entitling the holder to acquire a further share for C$0.10  each for up to two years, until 29 June 2020.

Busy period

It's been a busy period for the firm. Earlier this month, the firm struck an agreement with Stadnyk & Partners to provide strategic advisory services to the company.

It will provide market awareness services to Preveceutical, and the company will issue two million stock options to Stadnyk & Partners.

In May this year, PreveCeutical said it had been awarded two additional permits by the Australian Government, Department of Health, for the importation of a second shipment of cannabis plant materials into Australia for research purposes and the shipment of dried cannabis materials.

In addition that month, it inked a non-disclosure agreement (NDA) with a globally recognized, innovative drug delivery device manufacturer.

This will allow the firm to enter discussions with the manufacturer for the supply of spray devices for use in the company's soluble gel drug delivery research program.

The aim is to apply the Sol-gel technology to cannabinoids (CBDs) to develop therapies for a range of symptoms, including pain, inflammation, seizures and neurological disorders.

Shares in Toronto are at C$0.075.

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