Tetra Bio-Pharma (TSX-V:TBP) has announced plans to raise another $4.5 million in the coming weeks, just days after it closed another multimillion-dollar round earlier this month.
The Orléans-based medical cannabinoid company said Friday that it would raise the money through a private placement offering of 4.5 million units on the TSX Venture Exchange, priced at a dollar each. Every unit entitles purchasers to one common share of the firm and a warrant to buy an additional share.
If this narrative sounds familiar, it’s because Tetra Bio-Pharma closed a similar $11.5 million funding round a little less than two weeks ago. The firm said then that the money would go towards advancing clinical trials of its cannabinoid-based pain relief therapy for late-stage cancer patients – the same goes for its most recent offering.
The primary difference between the two rounds is that this latest fundraising is a non-brokered private placement, which means there are no underwriters to sell shares to investors – Tetra’s investor relations division will do so itself.
Tetra Bio-Pharma expects the placement to close on or around Mar. 31.
The company’s shares were down five cents, or almost five per cent, to 97 cents on the TSX Venture Exchange in late afternoon trading on Monday.