NeuroThera Labs Inc. (TSXV: NTLX), a clinical-stage biotech company and majority-owned subsidiary of SciSparc Ltd., announced the closing of the first tranche of its non-brokered private placement, raising gross proceeds of C$2,700,000. The company sold 22,500,000 units at C$0.12 per unit, each consisting of one common share and one common share purchase warrant.
The warrants entitle holders to purchase an additional common share at an exercise price of US$0.115 (approximately C$0.16) until August 12, 2029. A notable feature of the warrants is an acceleration provision: if the company's securities are approved for trading on the Nasdaq Stock Market, the expiry date for 50% of the unexercised warrants will be accelerated, with three business days' written notice provided to holders. The warrants are non-transferable.
The company intends to allocate the net proceeds to general working capital, including evaluating prospective transactions, settling liabilities, and repaying outstanding indebtedness to SciSparc Ltd. This financial infusion is expected to support NeuroThera's ongoing operations and strategic initiatives as it advances its pipeline of novel therapeutics for central nervous system disorders.
All securities issued in connection with the first tranche are subject to a four-month-and-one-day restricted period. The offering remains subject to final approval from the TSX Venture Exchange and other applicable regulatory approvals. In connection with the closing, the company paid C$222,750 in finder's fees to an arm's length party and issued 2,812,500 common shares as additional compensation.
This capital raise comes at a critical time for NeuroThera, which is focused on developing treatments for underserved health conditions through collaborations and innovative combinations. The funds will enable the company to continue its research and development efforts and pursue potential strategic opportunities. The successful closing of this tranche also signals investor confidence in the company's direction and its potential to bring new therapies to market.
NeuroThera's relationship with SciSparc, its majority shareholder, remains integral to its operations. The repayment of indebtedness to SciSparc is a key use of funds, which may strengthen the company's balance sheet and financial independence. As the company progresses, it may seek additional tranches of the offering, subject to market conditions and regulatory approvals.
The company also reiterated its commitment to maintaining compliance with securities regulations, noting that the securities issued have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption. This announcement follows the company's earlier disclosures on June 30 and July 2, 2026, regarding the offering.
For more information, interested parties are encouraged to review the original press release on NewMediaWire.
