Emyria's share price fell 12% on Tuesday after the company announced it had completed a A$2.5 million placement with new and existing investors.
The proceeds will be directed across several priorities, including a phase III clinical trial for low-dose CBD, development programs for MDMA-based therapies, and preparations to register its new CBD product, EMD-RX9, with the US Food and Drug Administration (FDA).
Chief executive Dr Michael Winlo said the backing from institutional and strategic investors reflected confidence in the company's direction.
"This investment enables us to advance multiple, innovative treatment development programs as well as deliver scalable, evidence-generating psychedelic-assisted therapy with our specialist partners," he said.
"We are well set to deliver on our vision of improving the lives of patients with mental health and neuroscience challenges while generating enduring value for our shareholders."
Despite the announcement, investors were unmoved, with Emyria shares sliding nearly 12% to $0.15c in mid-afternoon trading.
The placement news followed the WA-based biotech's release of its March quarter financial results, which showed the company recorded receipts of $426,000, with the bulk coming through its Emerald Clinic network.
Government grants and tax incentives totalling more than $2 million were received during the quarter, allowing Emyria to post a positive operating cash flow of $602,000. Across the first three quarters combined, the net cash flow deficit stood at $2.7 million.
At the close of the quarter, the company held $2 million in cash.
