Despite the challenges of raising capital these days in the cannabis and psychedelics industry, two companies managed to close deals before the end of the year.
The Canadian-based Trees Corp. (NEO: Tree) completed the closing of a non-brokered private placement of 745 units at a price of $1,000 per unit for gross proceeds of approximately $745,000. The closing is expected to be the final tranche closing in the larger offering for aggregate gross proceeds of $945,000, as previously announced on October 21, 2022. The company said it would the money for general working capital requirements and the opening of its next Trees Cannabis location in Etobicoke, ON, anticipated opening in January 2023. The company currently has 13 Trees branded storefronts in Canada, including eight (8) stores owned and operated in Ontario and five (5) stores operated in BC.
According to the company statement, each Unit consists of one 12.0% secured convertible promissory note bearing a principal amount of $1,000, convertible into common shares of the company at a conversion price of $0.015 per common share and maturing 36 months from the closing of the Private Placement
Psilocybin drug company Bright Minds Biosciences Inc. (CSE: DRUG) (NASDAQ: DRUG) announced a non-brokered private placement of pre-funded warrants of the company at a price of $1.249 per PFW and units of the company at a price of $1.25 per Unit. The aggregate minimum gross proceeds are $1 million and the aggregate maximum gross proceeds are $2,050,000. The company said it plans to use the money to complete the Phase 1 clinical trial for BMB-101 and a regulatory toxicology package and related activities for BMB-202.
Bright Minds is focused on developing novel transformative treatments for neuropsychiatric disorders, epilepsy, and pain. The company’s drugs have been designed to potentially retain the therapeutic aspects of psychedelic and other serotonergic compounds, while minimizing the side effects, thereby creating better drugs to first-generation compounds, such as psilocybin. Bright Minds has a portfolio of next-generation serotonin agonists designed to target neurocircuit abnormalities that are responsible for difficult-to-treat disorders such as resistant epilepsy, treatment-resistant depression, PTSD, and pain.