PharmAla announces private placement via Investing.com

TORONTO, Dec. 13, 2024 (GLOBE NEWSWIRE) — PharmAla Biotech Holdings Inc. (PharmAla or the Company) (CSE: MDMA) (OTC: MDXXSF), a biotechnology company focused on the research, development and production of LaNeo™ MDMA and new MDMA derivatives (MDXX class molecules), is pleased to announce its intention to complete a non-brokered private placement of the Company’s units (each , a Unit) at a price of $0.18 per unit for total gross revenue of $1,400,000 ( Offer) or such higher amount at the company’s discretion. The offer may be oversubscribed. It is expected that the Offering will primarily be purchased by a single high net worth strategic investor.

Each unit consists of one common share in the share capital of the Company (each, a Common Share) and half of one (0.5) order to purchase the Company’s ordinary shares (each whole warrant, Account). Each Warrant entitles its holder to acquire one additional ordinary share (each, an Additional share) at a price of $0.27 per additional share at any time before 4:30 p.m. (Toronto time) on a date that is thirty-six months after the closing date ( Warrant Term), provided that, if the closing price of the Common Shares on the Canadian Stock Exchange ( CSE) is $0.38 or more per common share for a period of ten consecutive trading days at any time after the completion of the Offer, the Company may accelerate the Warrant Term, in accordance with the policies of the CSE, so that the Warrants expire on a date that is thirty days after the date on which the Company issued a press release in which publishes a shortened warranty period in accordance with the terms and conditions of the certificate presenting such Orders.

The Company intends to use the net proceeds of the Offering to secure global patent rights for its portfolio of new intellectual property assets, manufacture products for sale, clinical leads in new patented drug candidates, sales, general corporate and working capital purposes.

Units will be offered to qualified purchasers pursuant to an exemption from the prospectus and registration requirements of applicable securities laws.

The Company may pay finder’s fees to qualified finders in connection with the Offering, subject to applicable securities laws and CSE policies.

All securities proposed to be issued in connection with the Offer are subject to a statutory waiting period of four months and one day from the date of issue. The Offering is expected to close on or about December 20, 2024, subject to customary closing conditions and compliance with CSE policies.

About PharmAla

PharmAla Biotech Holdings Inc. (CSE: MDMA)(OTCKB:MDXSKSF) is a biotechnology company focused on the research, development and production of MDXX class molecules, including MDMA. PharmAla was founded with a dual focus: to alleviate the global backlog of clinical-grade generic MDMA to enable clinical trials as well as commercial sales in select jurisdictions, and to develop new drugs in the same class. PharmAla is the only company currently providing clinical-grade MDMA for patient treatments outside of clinical trials. PharmAla’s research and development unit has completed proof-of-concept research in several IP families, including ALA-002, its lead drug candidate. PharmAla is the first regulatory organization, formed on the principle that true success in the psychedelic industry can only be achieved through excellent relationships with regulators.

For more information contact:
Nikola Kadis
chief executive officer
PharmAla Biotech Holdings Inc.
Email: press@PharmAla.ca
Phone: 1-855-444-6362
Website: www.PharmAla.ca

Neither CSE nor its regulatory service provider has reviewed or accepted responsibility for the adequacy or accuracy of this publication.

Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. Any statements contained herein that are not clearly historical in nature may constitute forward-looking statements. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as plans, strategy, expects or does not expect, intends, continues, anticipates or does not anticipate, or believes, or variations such words and phrases or may contain statements that certain actions, events or results undertaken, started or initiated, will include, allow, will continue, occur or will be achieved. Forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company’s intention to complete the Offer and the settlement of debt; The offering and settlement of debt is being conducted in accordance with the policies of the CSE and applicable securities laws; the expected size of the Offer, closing time, venue and use of proceeds; and the anticipated completion of the entire Offer under the specified conditions.

Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those anticipated by these statements. Although the Company believes that the expectations reflected in these statements are reasonable, such statements are based on expectations, factors and assumptions regarding future events that may prove to be incorrect and are subject to numerous risks and uncertainties, some of which are beyond the Company’s control. control, including but not limited to the risk factors discussed under the heading Risk Factors in the Company’s Management’s Discussion and Analysis, and elsewhere in this press release, as such factors may be further updated from time to time in our periodic filings, available at www.sedarplus.ca, which factors are included here as reference. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date of this statement and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results, or otherwise, or to explain any material difference between subsequent actual events and such predictions information, unless required by applicable law.

This press release will not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of securities in any state in which such an offer, solicitation or sale would be illegal. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements of the United States State Securities Act of securities of 1933, as amended, and applicable state securities laws.

Source: PharmAla Biotech