Claritas Announces Proposed Financing with Obsidian Global GP, LLC, Receipt of Australian Tax Credit, and Start of Phase 1 Clinical Study of R-107
Claritas Pharmaceuticals announces the closing of a brokered private placement offering, securing net proceeds of USD $930,000, subject to TSXV approval. This includes a cash rebate of AUD $880,000 for R&D expenses from the Australian Tax Office. The funds will primarily support the Phase 1 clinical study of R-107 in Adelaide, Australia. The company expects to complete this study by Q1 next year, followed by a Phase 2a study involving COVID-19 related PAH by Q3 next year. Aggregate proceeds from the offering will total approximately CAD $1,980,000.
- Secured net proceeds of USD $930,000 from the first tranche of a brokered private placement.
- Received AUD $880,000 cash rebate for R&D expenses from the Australian Tax Office.
- Initiated Phase 1 clinical study of R-107, with expectations to complete it by Q1 next year.
- Conversion of the debenture at 130% of the previous 5-day VWAP could lead to shareholder dilution.
- Amortization payments starting January 2022 may strain cash flow if paid in shares.
SAN FRANCISCO and TORONTO, Aug. 18, 2021 (GLOBE NEWSWIRE) -- Claritas Pharmaceuticals, Inc. (TSX VENTURE: CLAS and OTC: KALTD) (the "Company" or "Claritas") is pleased to announce that, subject to TSXV approval, it will close the first tranche of a brokered private placement offering (the “Offering”) of convertible debentures with Obsidian Global Partners, LLC (“Obsidian”) for net proceeds of USD
Highlights
- Claritas will receive aggregate proceeds of approximately CAD
$1,980,000 (the “Aggregate Proceeds”) from the closing of the first tranche of the Offering and the receipt of a cash rebate of R&D expenses from the Australian Tax Office. - Subject to the satisfaction of certain equity conditions, a second tranche of the Offering will close in 90 days and will provide additional proceeds of USD
$750,000 and a third tranche will close 120 days following the closing of Tranche 2 and will provide additional proceeds of approximately USD$1,250,000. - The Aggregate Proceeds will be allocated primarily to the cost of the Phase 1 clinical study of R-107, as well as for general corporate purposes.
Terms of the Offering
On closing of the first tranche of the Offering, the Company will receive gross proceeds of USD
The securities offered in the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and were not offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
“We are delighted to announce this transaction with Obsidian, which has enabled the Company to initiate the Phase 1 clinical study of R-107 with CMAX in Adelaide, Australia,” said Robert Farrell, Claritas’ President and CEO. “We expect to complete the Phase 1 clinical study by Q1 next year, and to complete a pilot Phase 2a clinical study of R-107 in hospitalized patients with COVID-19 related PAH by Q3 next year.”
The Australian R&D Expense Rebate
The Australian Taxation Office (the “ATO”) provides a rebate to Australian companies of
About Claritas Pharmaceuticals
Claritas Pharmaceuticals, Inc. is a clinical stage biopharmaceutical company focused on developing and commercializing therapies for patients with significant unmet medical needs. Claritas leverages its expertise to find solutions that will improve health outcomes and dramatically improve people's lives.
- Website Home: https://claritaspharma.com/
- News and Insights: https://claritaspharma.com/news/
- Investors: https://claritaspharma.com/investors
Cautionary Statements
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation in respect of its product candidate pipeline, planned clinical trials, regulatory approval prospects, intellectual property objectives, and other statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risk that future clinical studies may not proceed as expected or may produce unfavorable results. Claritas undertakes no obligation to comment on analyses, expectations or statements made by third parties, its securities, or financial or operating results (as applicable). Although Claritas believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Claritas’ control. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Claritas disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Contact Information
Robert Farrell
President, CEO
(888) 861-2008
info@claritaspharma.com
FAQ
What are the financial proceeds from Claritas Pharmaceuticals' recent offering?
What is the purpose of the funds raised in the private placement?
What is the timeline for the Phase 1 clinical study of R-107?
What is the amount of the cash rebate received from the Australian Tax Office?