ASX-listed Creso Pharma has received firm commitments totalling A$2 million through a share placement round.
The capital raised is intended to fund US sales and marketing activities, advance a phase II clinical trial examining psilocybin's effectiveness in treating treatment-resistant Post Traumatic Stress Disorder (PTSD), and pursue merger and acquisition opportunities.
Creso plans to issue approximately 133 million new shares to institutional, sophisticated and professional investors at $0.015 cents per share, a 16.33% discount to its closing price of $0.018 cents on February 14.
Among the commitments is a $100,000 participation from CEO and managing director William Lay, which remains subject to shareholder approval at a future general meeting.
Participating investors will receive two options for each placement share subscribed for and issued — one free-attaching listed option exercisable at eight cents and one free-attaching unlisted option exercisable at three cents — both of which are also contingent on shareholder approval.
Lay said the company received strong support from a range of investors for the placement during a "critical growth period" for Creso.
He added: "The company continues to achieve record revenue growth and has a number of initiatives underway which are expected to unlock considerable value for shareholders."
In its ASX announcement, the company noted that the placement follows record revenue growth of 44% to $8.95m in FY22 and a "considerable reduction in net operating expenditure".
Creso shares closed on Friday (February 17) at $0.017 cents.
