BetterLife Pharma closes $100M public offering on Canadian exchange

BetterLife Pharma Inc. (CSE: BETR), a biotechnology company developing treatments for neurological disorders, has closed a public offering of common shares and pre-funded warrants, raising approximately US$100 million (CDN$138.75 million) in aggregate gross proceeds.

The company issued 447,041,840 common shares at CDN$0.25 per share and 107,958,160 pre-funded warrants at CDN$0.24999 each. Following the closing, BetterLife has 618,007,179 common shares and 107,958,160 pre-funded warrants issued and outstanding.

The offering was led by Deep Track Capital, with co-investments from Coastlands Capital, Marshall Wace, RA Capital Management, and Perceptive Advisors, among other institutional investors. Bloom Burton Securities Inc. served as lead agent alongside Haywood Securities Inc.

The company paid agents a cash commission of US$6.9 million, equal to 7% of gross proceeds, and issued 38,284,189 broker warrants exercisable at CDN$0.25 per share until September 17, 2029.

BetterLife said it intends to use net proceeds to fund Phase 1A studies in healthy humans, conduct Phase 1B clinical trials for cluster headache and migraine, and advance into Phase 2 trials for those conditions. The remainder will support working capital and general corporate purposes.

Agents hold an over-allotment option, exercisable until October 17, 2026, to sell additional securities representing up to 15% of the offering. If exercised in full, total gross proceeds would reach approximately US$115 million (CDN$159.6 million).

BetterLife's lead drug candidate, BETR-001, is described by the company as a non-hallucinogenic LSD derivative in preclinical and IND-enabling studies for neurological disorders. The offering was completed under a short form prospectus filed in British Columbia, Alberta, and Ontario, according to the company's statement.

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