PharmAla Biotech announces Non-Brokered Private Placement Offering of up to an Aggregate of $5,000,000

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VANCOUVER, British Columbia, June 12, 2023 (GLOBE NEWSWIRE) -- PharmAla Biotech Holdings Inc. (the “Company” or “PharmAla”) (CSE: MDMA) (OTC: PMBHF), a biotechnology company focused on the research, development and manufacturing MDXX class molecules (including MDMA), is pleased to announce a non-brokered private placement of a minimum 3,333,333 units and a maximum 16,666,666 units of the Company (each a “Unit”) at a price of $0.30 per Unit for aggregate gross proceeds of a minimum of $1,000,000 and a maximum of $5,000,000 which will be offered for sale to purchasers resident in Canada (except Quebec) and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions (the “LIFE Offering”).

Each Unit consists of one common share of the Company (each a “Common Share”) and one-half Common Share purchase warrant (“Warrant”). Each whole Warrant entitles its holder to acquire one Common Share for a period of 24 months following the closing of the Offering (“Closing Date”).

In the event that, during the period following 24 months from the Closing Date, the volume-weighted average trading price of the Common Shares exceeds $0.675 per Common Share for any period of 20 consecutive trading days, the Company may, at its option, following such 20-day period, accelerate the expiry date of the Warrants by issuing a press release (a “Warrant Acceleration Press Release”), and, in such case, the expiry date of the Warrants shall be deemed to be 5:00 p.m. (Toronto time) on the 30^th day following the date of issuance of the Warrant Acceleration Press Release.

The Company intends to use the net proceeds from the LIFE Offering to (i) increase in increase its inventory of MDMA and psilocybin for the future sales in Australia and outside Australia, (ii) phase 2 clinical trials of the Company’s patented ALA series of molecules, and (iii) general working capital purposes. The Company may compensate certain eligible finders under the LIFE Offering and may pay a cash commission of up to 7% of the gross proceeds of the LIFE Offering and issue such number of finder’s warrants equal to 7% of the total number of Units issued under the LIFE Offering.