BetterLife Announces Closing of a Private Placement

Rhea-AI Summary

BetterLife Pharma, a biotech firm specializing in mental disorder treatments, has closed a non-brokered private placement, issuing 5.3 million units at $0.10 per unit. This generated $530,000 in gross proceeds. Each unit includes one common share and one warrant, with a warrant exercise price of $0.13, valid for 24 months. CEO Dr. Ahmad Doroudian subscribed for 500,000 units, categorized as a 'related party transaction.' The transaction met exemptions under MI 61-101. BetterLife plans an additional private placement tranche to raise up to $100,000.

Positive

• Raised $530,000 in gross proceeds.
• Each unit includes a warrant exercisable for 24 months at $0.13.
• CEO's participation may indicate internal confidence.
• Plans for an additional $100,000 tranche show ongoing funding efforts.

Negative

• Private placement may lead to shareholder dilution.
• Units are subject to a 4-month hold period under Canadian law.
• Failed to file a material change report 21 days before closing.
• Dependence on exemptions for related party transactions.

VANCOUVER, British Columbia, June 14, 2024 (GLOBE NEWSWIRE) -- BetterLife Pharma Inc. (“BetterLife” or the “Company”) (CSE: BETR / OTCQB: BETRF / FRA: NPAU), an emerging biotech company focused on the development and commercialization of cutting-edge treatments for mental disorders, is pleased to announce that it has closed a non-brokered private placement, previously announced on May 3, 2024, pursuant to which the Company issued 5,300,000 units (“Units”) at a price of $0.10 per Unit for aggregate gross proceeds of $530,000 (the “Offering”). Each Unit is comprised of one common share and one warrant. Each warrant entitles the holder thereof to acquire one common share at an exercise price of $0.13 at any time up to 24 months from the closing of the Offering. The Units sold pursuant to the Offering will be subject to a four month hold period pursuant to applicable Canadian securities laws. Dr. Ahmad Doroudian, Chief Executive Officer of the Company, subscribed for a total of 500,000 Units under the Offering.

The participation of Dr. Doroudian in the private placement constituted a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101“). The issuance to the insider was exempt from the formal valuation requirements of MI 61-101 by virtue of the exemption contained in section 5.5(b) as none of the securities of the Company are listed on a specified stock exchange. The transaction is exempt from the minority shareholder approval requirements of MI 61-101 by virtue of exemption contained in section 5.7(a) of MI 61-101. At the time the transaction was agreed to, neither the fair market value of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeded 25% of the Company’s market capitalization. The Company did not file a material change report at least 21 days prior to the expected closing of the Offering as Dr. Doroudian’s participation was not determined at that time.

The Company intends to complete a further tranche of non-brokered private placement for aggregate gross proceeds of up to $100,000 to be issued in units, with each unit comprised of one common share and one common share purchase warrant having a term of two years from the closing date.

About BetterLife Pharma

BetterLife Pharma Inc. is an emerging biotechnology company primarily focused on developing and commercializing two compounds, BETR-001 and BETR-002, to treat neuro-psychiatric and neurological disorders.

BETR-001, which is in preclinical and IND-enabling studies, is a non-hallucinogenic and non-controlled LSD derivative in development and it is unique in that it is unregulated and therefore can be self-administered. BetterLife’s synthesis patent for BETR-001 eliminates regulatory hurdles and its pending patent, for composition and method of use, covers treatment of major depressive disorder, anxiety disorder and neuropathic pain and other neuro-psychiatric and neurological disorders.

BETR-002, which is in preclinical and IND-enabling studies, is based on honokiol, the active anxiolytic ingredient of magnolia bark. BetterLife’s pending method of use and formulations patent covers treatment of anxiety related disorders including benzodiazepine dependency.

BetterLife also owns a drug candidate for the treatment of viral infections and is in the process of seeking strategic alternatives for further development.

For further information, please visit BetterLife Pharma.

BetterLife Pharma Inc. Contact Information

David Melles, Investor Relations Manager
Email: David.Melles@blifepharma.com
Phone: 1-778-887-1928

Cautionary Note Regarding Forward-Looking Statements

No securities exchange has reviewed nor accepts responsibility for the adequacy or accuracy of the content of this news release. This news release contains forward-looking statements relating to product development, licensing, commercialization and regulatory compliance issues and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include the failure to satisfy the conditions of the relevant securities exchange(s) and other risks detailed from time to time in the filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by applicable law.

FAQ

What is the stock symbol for BetterLife Pharma?

The stock symbols for BetterLife Pharma are CSE: BETR, OTCQB: BETRF, and FRA: NPAU.

How much did BetterLife Pharma raise in the recent private placement?

BetterLife Pharma raised $530,000 in gross proceeds from the recent private placement.

What are the terms of the warrants issued in BetterLife Pharma's private placement?

Each warrant allows the holder to purchase one common share at $0.13, valid for up to 24 months.

What is the significance of Dr. Ahmad Doroudian's participation in the private placement?

Dr. Ahmad Doroudian's participation, involving 500,000 units, was a 'related party transaction' as per MI 61-101.

Does BetterLife Pharma plan any additional private placements?

Yes, BetterLife Pharma plans to complete another tranche to raise up to $100,000.

What is the hold period for the units sold in BetterLife Pharma's private placement?

The units are subject to a four-month hold period under Canadian securities laws.