BetterLife Announces Closing of $1.168 Million Convertible Debentures to Further Advance IND-enabling Studies of its Non-hallucinogenic LSD-based Drug Candidate BETR-001

VANCOUVER, British Columbia, April 03, 2024 (GLOBE NEWSWIRE) -- BetterLife Pharma Inc. (“BetterLife” or the “Company”) (CSE: BETR / OTCQB: BETRF / FRA: NPAU), an emerging biotech company focused on the development and commercialization of cutting-edge treatments for mental disorders, is pleased to announce the closing of $1.168 million of convertible debentures to further advance the development of its lead compound, BETR-001. BETR-001 is BetterLife’s proprietary 2-bromo-LSD, a non-hallucinogenic derivative of lysergic acid diethylamide (LSD). The IND-enabling cardio-pulmonary GLP studies have been completed, and the metabolism and genotoxicity GLP studies are to be initiated shortly.

Dr. Ahmad Doroudian, CEO of BetterLife, commented, “We are very encouraged with FDA’s recent decision to grant breakthrough therapy designation to LSD for generalized anxiety disorder (GAD) patients. This further validates our efforts in research and development of our non-hallucinogenic LSD-based drug candidate BETR-001 for treatment of GAD and major depressive disorder (MDD).”

Dr. Doroudian added, “Our preclinical data indicates that BETR-001 has similar but more selective neuroreceptor activity profile compared to LSD. Importantly, it shows improved cardiac safety over LSD due to lack of 5-HT2B receptor activity, reverses anxiety- and depression-like behavior in animal models and does not cause hallucinations. As a non-hallucinogenic substance, BETR-001 lacks LSD’s challenges with manufacturing, distribution and patient administration. We believe BETR-001 will deliver similar therapeutic benefits to LSD but without the safety challenges and regulatory hurdles. Our goal is patient self-administration without the need to go to specialized clinics with special monitoring, and to have laws changed to allow patient access. In simple words, we believe BETR-001 will deliver all the therapeutic benefits of LSD without its side effects.”

BetterLife issued a total of $1.168 million 10% convertible debentures (the “Convertible Debentures”). $800,000 of the Convertible Debentures mature on March 27, 2026 and $368,000 mature on April 1, 2026. The Convertible Debentures are convertible at the option of the holder into units of the Company, consisting of one common share and one share purchase warrant, at a conversion price of $0.10 per unit. Each share purchase warrant will have an exercise price of $0.10 and will expire on either September 27, 2026 or October 1, 2026. Dr. Ahmad Doroudian, Chief Executive Officer of the Company, and Dr. Steven Sangha, a shareholder who owns greater than 10% of the Company’s common shares, subscribed for a total of $100,000 Convertible Debentures each. The participation of Dr. Doroudian and Dr. Sangha in the private placement constituted a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101“). The issuances to the insiders were exempt from the formal valuation requirements of MI 61-101 by virtue of the exemption contained in section 5.5(b) as none of the securities of the Company are listed on a specified stock exchange. The transactions are exempt from the minority shareholder approval requirements of MI 61-101 by virtue of exemption contained in section 5.7(a) of MI 61-101. At the time the transactions were agreed to, neither the fair market value of, nor the fair market value of the considerations for, the transaction, insofar as it involves interested parties, exceeded 25% of the Company’s market capitalization.   The Company did not file a material change report related to Dr. Sangha’s participation at least 21 days prior to the expected closing of the Convertible Debentures as his participation was not determined at that time. A material change report related to Dr. Doroudian’s participation was filed on March 5, 2024.