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Champignon Closes CA$15M Private Placement Deal

June 11, 2020 5:14 pm
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Champignon Closes CA$15M Private Placement Deal

Psychedelics innovator Champignon Brands Inc. (CSE:SHRM) (OTC:SHRMF) closed a private placement offering of about CA$15 million (US$11 million).

Canaccord Genuity Corp., Eight Capital and Gravitas Securities Inc. were the underwriters for the transaction.

The Vancouver-based company intends to invest proceeds from the offering in Champignon's North American Clinical footprint expansion.

As part of the agreement, some 17.6 million units were exchanged at a price of 85 cents per unit. Each unit is composed of one common share and one-half of one common share purchase warrant of Champignon.

Each warrant entitles the holder to acquire one common share at a price of CA$1.15 per unit until June 11, 2022.

"Champignon Brands is set to emerge as an impact investment that will not only change people's lives, but will also revolutionize the face of medicine as we know it today,” Present Board Member and former CEO Gareth Birdsall told Benzinga.

Earlier this year Champignon announced the acquisition of Novo Formulations and AltMed Capital Corp, run by newly appointed CEO Dr. Roger McIntyre.

McIntyre said his goal is to establish Champignon as the "apotheosis of integrated ketamine treatment delivery" and commercialize the company's psychedelic-based treatments.

"The clinical infrastructure, complementary asset base and human capital that Champignon has acquired leaves me very confident we will provide life-changing treatments for persons with depression, all the while contemporaneously rewarding our investor base," he added.