Filament Health plans to delist Cboe Canada and raise C$1 million – MEDCAN24

Filament Health Corp. (OTCQB: FLHLF) (Cboe CA: FH) (FSE: 7QS) said that it will raise around C$900,000 via a private placement led by existing investor Negev Capital Fund One and company insiders, while also planning to voluntarily delist from the Cboe Canada exchange – just days after reporting latest challenges including a nearly $5 million annual loss and dwindling cash reserves.

In a news release published on Thursday, it was revealed that financing would be provided through units made up of secured convertible bonds with an annual rate of 9% and warrants for common stock purchases. The warrants are 36 months long and will cost C$0.03 each.

Vadim Uzberg said, “As an avid supporter of Filament Health’s mission and mission-driven business, we continue to be committed to this company,” in a Negev Capital statement. “Filament continues to be well-positioned. Its groundbreaking botanical drug-development platform, and its leading intellectual-property portfolio are a great combination.”

According to the company, maintaining its Cboe Canada stock exchange listing is financially challenging due to its low share trading volume. Filament plans to ask shareholders for approval at an special meeting scheduled on May 6th.

Benjamin Lightburn (co-founder of Cboe Canada) said that the financing and delisting will help to achieve certain short-term objectives. It was noted by the company that maintaining an active Cboe Canada listing would hinder “certain opportunities” including potential future listings on U.S. senior exchanges.

Filament has said that despite its plans to delist, it will remain a reporting company and be subject to the disclosure requirements under Canadian securities law.

Filament Health is a drug developer that specializes in developing psychedelic drugs from natural sources. Filament Health claims that it is developing “the very first natural psychedelics drug candidates”.

As of the 31st of December 2024, according to results published earlier this week by the company, it had a $4.97-million net loss and only $391.237 in cash, compared with $1.83-million a few months earlier. Revenue fell from 2,13 million dollars to $616 678.

Filament’s Financials include a note by auditors indicating that “material uncertainties exist regarding the Company’s ability execute its business plan” and to continue with the usual course of operation due to a negative cashflow and an accumulation deficit of 36.12 million dollars. Green Market Report reported.

In its earnings announcement, Lightburn highlighted its leading program PEX010 which has shown promise in clinical trials. The company reported that a Phase II clinical trial performed at Psychiatric centre Copenhagen revealed that a single PEX010 dose reduced the number of heavy drinking days in patients with severe Alcohol Use Disorder by over 50% during a 12-week period.

Net proceeds will provide the company with “additional flexibility in terms of financial resources” as they continue their clinical development. The private placement will not be subject to any transaction costs or fees, and the C$900,000.00 goes directly to the firm.