Filament Health Corp (OTCMKTS: FLHLF) (FRA: 7QS) revealed Thursday that it has lined up a C$900,000-dollar investment in a financing round led by a psychedelics venture capital fund and company insiders.
Negev Capital, the capital raise leader, holds a psychedelic medicine producer portfolio valued at over C$42 million. Other companies the firm has a stake in include Cybin Inc (NYSEAMERICAN: CYBN) (FRA: RZE), Awakn Life Sciences Corp (CNSX: AWKN) (OTCMTS: AWKNF) (FRA: 954) and ATAI Life Sciences NV (NASDAQ: ATAI) (ETR: 9VC).
News of the funding comes on the back of concerning year-end results released by Filament on Apr. 1. The psilocybin mushroom cultivator reported revenue totalling C$616,678 — a steep decline from the C$2.13 million raked in during 2023. Also, the company’s cash and cash equivalents balance declined sharply from C$1.8 million in 2023 to only C$391,000 at the end of last year.
Additionally, Filament’s financial statement showed an accumulated deficit of C$36 million and a net loss of C$4.7 million for 2024. But, the latter number is a slight improvement from the C$5.3 million lost in 2023. Clinical trial expenses along with other research and development costs are currently weighing Filament down.
“While this past year presented challenges, we remain steadfast in our mission to unlock the therapeutic potential of botanical psilocybin and our other botanical drug candidates,” CEO Benjamin Lightburn commented in a press release highlighting Q4 and 2024 results.
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Flagship drug could help alleviate suffering in multiple forms
Filament aims to progress studies on its lead psilocybin drug candidate (PEX010) and use its commercialization to capitalize on the multi-billion-dollar market for pharmaceutical opioid use disorder treatments. It is currently being assessed in dozens of clinical trials throughout multiple countries.
Filament recently reported favourable data from a Phase II assessment on PEX010 for alcohol use disorder in the Netherlands. The natural drug helped reduce heavy liquor consumption among participants by 50 per cent on average over a 3-month observation period.
Depression, stimulant use disorder and chronic pain are other conditions it is being examined as a treatment option for.
Read more: Psilocybin shows great promise for brain recovery after head injuries in rodents
Filament to delist from Cboe Canada exchange
In conjunction with the 6-figure investment reveal, Filament just announced that it was no longer feasible to remain listed on the Cboe Canada stock exchange.
Pending shareholder approval at an upcoming meeting on May 6, the company will delist and focus on trying to secure a place on the Nasdaq or New York Stock Exchange. Filament previously planned a Nasdaq listing in 2023 through a merger with a special purpose acquisition company, but the arrangement fell through.
“The expense and administrative requirements associated with maintaining the listing on the Cboe Canada are no longer tenable given the trading volume of common shares on the exchange,” Filament specified in its news release. “The fees associated with maintaining the listing will be redirected to Filament’s clinical development and other operating initiatives.”
rowan@mugglehead.com
