An Orléans bioscience firm that’s working on cannabinoid-based drugs designed to mimic the anti-inflammatory benefits of cannabis without the side effects has closed a $10-million public offering to help fund its research.
Tetra Bio-Pharma said Monday it sold a total of 25 million units in the company for 40 cents each. Each unit consists of one share in Tetra as well as a warrant that entitles the buyer to purchase an additional share within the next 24 months at a price of 51 cents.
The offering was led by Echelon Wealth Partners, with additional participation from Canaccord Genuity and Leede Jones Gable.
Tetra said it intends to use the net proceeds for clinical trials, working capital and general corporate purposes.
CEO Guy Chamberland told OBJ earlier this year Tetra’s drugs could offer breakthrough treatments for sepsis and acute respiratory distress syndrome, life-threatening conditions triggered when the body’s immune system “goes rogue” in response to an infection such as COVID-19 and begins attacking healthy cells as well as harmful bacteria and viruses.
The company has signed a deal with Toronto-area pharmaceutical company Dalton Pharma Services to manufacture the drug. Tetra’s scientists conducted a series of toxicology studies last year to pave the way for expedited human clinical trials in Canada and the U.S.
Chamberland said in March that if all goes according to plan, the drug could be in hospitals across Canada before the end of the year.
Tetra’s shares closed up one cent to 38 cents on the Toronto Stock Exchange on Monday.