Naturally Splendid Enterprises Ltd (CVE:NSP) (OTCMKTS:NSPDF) closed an oversubscribed financing of C$1.05 million on Monday to fund laboratory and office space for an upcoming clinical trial of potential COVID-19 treatment, it said Monday.
The firm recently announced a joint venture with Biologic Pharmaceutical Research to kick off a phase 2 clinical trial of Cavaltinib, which has been shown to inhibit small proteins released by cells called cytokines that are central to the “cytokine storm” phenomenon in COVID-19 patients.
Portions of the funds will also be directed towards the Vancouver-based 100% owned Prosnack Natural Foods, Safe Quality Food Level 2 certified food manufacturing facility.
READ: Naturally Splendid Enterprises shares lifted as it inks definitive agreement over Biologic Pharmamedical JV
“While pursuing the COVID-19 treatment clinical trial, the company continues its role in the food supply chain manufacturing plant-based bars and bites,” Naturally Splendid CEO Craig Goodwin said in a statement.
“Food facilities with certifications such as our Safe Quality Food designation have never been more valuable and the demand for plant-based foods, have never been higher.”
Goodwin noted that Cavaltinib, the target drug for its COVID-19 clinical trial, is derived from plants.
“The company continues to seek opportunities to expand our plant-based offerings and look forward to updates in the near future,” Goodwin added. “The plant-based food category is growing at a rate outpacing traditional food channels and we expect this trend to continue post pandemic times and we will continue to position the company to participate in this rapidly growing category.”
Biologic CEO Franco Cavaleri noted that the two firms have worked together for over two years. “In addition to pursing a COVID-19 treatment, there is optimism that the trial and the ensuing bench work will help expand the indications for Cavaltinib to respiratory conditions such as asthma and COPD; and reveal mechanisms of activity that justify the results we’ve seen in cases of autoimmune diseases like colitis, crohn’s and rheumatoid arthritis.”
Under the terms of the financing, the company sold nearly 15.9 million units priced at C$0.06 for total gross proceeds of $1,053,250, with each unit consisting of one share and one-half warrant exercisable at C$0.10 for a two-year period. The warrants contain an acceleration clause that allows the firm to accelerate the expiry date if the average closing price of shares is equal to or above C$0.15 for 10 consecutive trading days.
The firm paid a finder’s fee of $7,432 in cash and issued a total of 123,867 finder’s warrants.
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Published at Mon, 21 Sep 2020 15:25:00 +0000-Naturally Splendid Enterprises closes C$1.05 million oversubscribed financing to advance COVID-19, natural food initiatives