Debra Borchardt
Tryp Therapeutics Inc. (CSE: TRYP) closed its previously announced private placement of secured convertible debentures for aggregate gross proceeds of AUD$ 2.4 million.
This represents an oversubscription of AUD$400,000 above its previously announced minimum placement of AUD$ 2 million. The company said the proceeds will be used to advance Tryp‘s research and development programs and for general working capital purposes.
The private placement constitutes a “related party transaction” as a director of the company has participated in the private placement, acquiring the aggregate principal amount of AUD$100,000 of debentures on the same basis as other subscribers.
Subsequent to the closing of the private placement, Dr. William Garner, executive director, owns or exercises control or direction over 38,420,000 common shares and 10,000,000 warrants, representing approximately 39.85% and 50.22% of the issued and outstanding common shares. Garner acquired an aggregate principal amount of AUD$1,200,000 of debentures under the private placement.
This assumes that the debentures convert at a price of CDN$0.09/share, 64.05% of the issued and outstanding common shares on a partially diluted basis and that Garner exercised all of his warrants and converted all of his debentures and no other holders of convertible securities exercised or converted any of their securities.
This same director is entitled to receive certain fees from Westar Capital Ltd., which acted as lead manager for the private placement, in connection with the private placement and the transactions contemplated in the engagement agreement.
Tryp Therapeutics is a clinical-stage biotechnology company focused on developing proprietary, novel formulations for the administration of psilocin in combination with psychotherapy to treat diseases with unmet medical needs. Tryp’s lead program, TRP-8803, is a proprietary formulation of IV-infused psilocin (the active metabolite of psilocybin) that alleviates numerous shortcomings of oral psilocybin including: significantly reducing the time to onset of the psychedelic state, controlling the depth and duration of the psychedelic experience, and reducing the overall duration of the intervention to a commercially feasible timeframe.
