An Ottawa bioscience company is turning to the markets for an injection of capital, announcing plans this week for a bought deal offering.
Tetra Bio-Pharma, which is developing cannabinoid-based treatments for chronic pain related to cancer, is raising $10 million for working capital and general purposes as it goes through the necessary clinical trials and regulatory hurdles before its drugs can hit the market.
Echelon Wealth Partners is acting as the sole bookrunner for the offering, which will see some 18.9 million units put on the market at a price of 53 cents each. Each unit entitles a buyer to one common share of the company and one warrant for a future purchase.
Shares of Tetra Bio-Pharma sat at 50 cents on the TSX Venture Exchange before markets opened Thursday.
Echelon also has an over-allotment option that could see the total funds raised rise to $1.15 million.
Tetra expects the financing to close on Feb. 13.