MDMA producer PharmAla issues 4.1M new shares to raise $750,000
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The funds will be used to continue securing “global patent rights” for PharmaAla’s intellectual property, among other things.
Canada-based psychedelic firm PharmAla Biotech Holdings (CSE: MDMA) (OTC: MDXXF) raised $750,000 through the issuance of roughly 4.1 million new shares of stock.
The funds will be used by PharmAla – which produces synthetic MDMA-like psychedelic goods for clinical trials – to continue securing “global patent rights” for its intellectual property, manufacturing products for sale, additional clinical trials for PharmAla medical products, and other general corporate purposes, the company said in a news release on Monday.
In addition, 600,000 of the shares were used to settle a $108,000 outstanding debt owed by PharmAla, with a third-party consultant. The deal preserves cash for working capital for PharmAla, the company asserted in its release. Those 600,000 shares are still subject to a “hold period” of four months and one day from issuance.
Each of the 4.1 million shares was priced at 18 cents each and consists of one common share and one-half of one warrant, the company said in its release.
PharmAla has been struggling for years, and as of its last financial report for the 2023 fiscal year, the company had just $195,000 in cash, after posting net losses of $779,000 and $985,0000 in back-to-back fiscal years. PharmAla also had a cumulative deficit as of last August of $4.1 million.
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