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Claritas (TSXV:CLAS) secures $5 million financing with Alumina Partners

Health Care
TSXV:CLAS
12 January 2022 14:00 (EDT)

Source: Claritas Pharmaceuticals

Claritas Pharmaceuticals (CLAS) has entered into an agreement with Alumina Partners to provide up to $5 million in equity financing for two years.

The initial proceeds from the agreement will be allocated to the remaining costs of the first phase clinical study of R-107.

Claritas is currently developing R-107, its proprietary nitric oxide-releasing compound, for the treatment of COVID-related lung diseases.

Future proceeds will be used for the Phase 2a study of R-107 in pulmonary arterial hypertension (PAH).

Claritas has the option to draw down cash tranches of up to $250,000.

Each tranche will be a private placement of units, comprised of one common share and one common share purchase warrant.

The units are issued at a discount of 15 to 25 per cent of the closing market price at the time each tranche is funded.

The exercise price of the warrants will be at a 25 per cent premium over the market price at the time of issuance.

Claritas will apply for additional grant funding with the Biomedical Advanced Research Development Authority (BARDA).

More than US$15 million of the early-stage development costs for R-107 were already funded under a BARDA contract.

Claritas will apply for a new BARDA contract to fund the Phase 2 and Phase 3 clinical studies of R-107.

Claritas Pharmaceuticals Inc. (CLAS) is down 4.55 per cent, trading at $0.21 per share at 1:50 p.m. EST.

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