Ottawa-based Tetra Bio-Pharma to raise $8M

cannabis

An Orleans-based cannabinoid drug company announced plans Thursday to raise $8 million in a bought deal offering.

Tetra Bio-Pharma (TSX-V:TBP), which alongside its subsidiaries researches therapies and develops natural health products based on cannabinoids, has agreed to offer eight million shares of the company at a price of $1 each. The offering is led by Echelon Wealth Partners with a syndicate of underwriters.

Tetra has included an overallotment option that, if exercised, would bring total proceeds from the financing to roughly $9.2 million.

The biopharmaceutical firm says it will use the funds to advance clinical testing for its PPP001 drug candidate, a potential pain-relieving therapy for late-stage cancer patients.

“The proceeds from this offering will enable Tetra to continue, and even accelerate some of the key development projects in our pipeline,” said CEO Bernard Fortier in a statement.

“This is another milestone in working towards becoming the first biopharmaceutical company in the world to get a smokable dried cannabis product approved as a prescription drug by Health Canada, the FDA and other regulatory agencies around the world.”

Shares of Tetra-Bio Pharma fell roughly 12 cents in trading on the TSX Venture Exchange on Thursday, closing around $1.