• The Week’s Closed Equity Deals
  • On February 27, 2024, Elevated Signals (Private), a Canadian pioneer in manufacturing software for cannabis and controlled environment agriculture, completed a $5.9M Series A funding round.
    • The round was led by Yaletown Partners, with participation from Third Kind Venture Capital, WGD Capital, Colin Harris, Raiven Capital, and Pareto Holdings.
    • Funds will be used to continue the firm’s expansion into a growing list of business types, including food, energy health, and others.
• On February 26, 2024, Revive Therapeutics Ltd. (RVV: CSE) (RVVTF: OTCQB), a Psychedelics sector company exploring the use of Bucillamine for the potential treatment of public health emergencies, as well as advancing the development of Psilocybin based therapeutics, closed a private placement of 33.9M units at $0.0259 per unit, for gross proceeds of $0.88M.
  • Each unit consisted of one share and ½ warrant with an exercise price of $.0370 (42.9% premium) and a three-year expiration.
  • The ½ share of warrants at a reasonably high 43% premium restricts the warrant value to $.002 per unit. The net share price of $.024 is an 18.95% discount to the pre-announcement price.
  • Revive will need additional financing in relatively little time, as evidenced by its proforma free cash flow adjusted current ratio of .14x. The company has a cash burn rate of approximately $2.6M per quarter.
  • The transaction implies a market cap of $9.5M and an enterprise value of $8.11M.
  • The proceeds will fund clinical work on long COVID, possible repayment of payables, and general corporate purposes.

Public vs. Private Raises: 

• Revive Therapeutics, this week’s only public capital raiser, trades on the CSE in Canada and the OTCQB in the U.S.

Equity vs. Debt Cap Raises: 

• Equity accounted for all of this week’s capital raises.