Novamind Inc. (CSE:NM) (OTCQB:NVMDF) (FSE: HN2) announced Monday a CA$5 million ($3.95 million) private placement with an institutional investor. The mental health company, specialized in psychedelic medicine, confirmed it has signed a securities purchase agreement with a single institutional investor for a private placement of its common shares, and warrants.
Under the private placement, the company will issue 12.5 million shares and warrants to buy up to an aggregate of 12.5 million shares at a price of CA$0.40 per share and associated warrant. Each warrant will entitle the holder to purchase one share at a price of CA$0.50 per share for a period of five years following the issuance date.
H.C. Wainwright & Co. is acting as the exclusive placement agent for the private placement.
Novimind plans to use the collected net proceeds from the private placement for standard working capital purposes. No securities were offered or sold to Canadian residents in connection with the private placement.
The private placement is expected to close on or about January 26, 2022, subject to satisfaction of customary closing conditions.
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Novamind shares were trading 11.74% lower at 36 cents per share at the time of writing Monday.