Marvel Biosciences Corp. announced its intention to conduct a non-brokered private placement to raise up to $2.5 million, primarily to fund a deposit for Phase 1 clinical trials of its lead compound, MB-204. The offering, priced at $0.15 per common share, aims to advance the development of MB-204 and cover general operational costs.
Funding Allocation and Trial Advancement
The net proceeds from the private placement will be strategically allocated. A significant portion will serve as a deposit for the Phase 1 clinical trials of MB-204, Marvel's primary drug candidate. The remaining funds will support general and administrative expenses and provide general working capital, ensuring the company's operational stability as it progresses through clinical development.
Offering Details and Availability
The private placement is structured to occur in one or more tranches, with the initial closing anticipated around February 14, 2025. This offering is extended to purchasers in all Canadian provinces, excluding Quebec, and select foreign jurisdictions, adhering to National Instrument 45-106 guidelines. The securities issued under the Listed Issuer Financing Exemption will not be subject to a hold period under Canadian securities laws.
Engagement of Abingdon Capital
Marvel Biosciences has engaged Abingdon Capital as a finder for this offering. Abingdon Capital is entitled to compensation as detailed in the offering document. Upon successful completion of the offering, Abingdon Capital will also be granted a right of first refusal to act as Marvel's non-exclusive advisor for 12 months post-closing. It should be noted that Neil Johnson, a director of Marvel, is also a partner at Abingdon Capital, making them a Non-Arm's Length Party under TSXV policies.
About MB-204
MB-204 is being developed by Marvel Biotechnology Inc., a wholly owned subsidiary of Marvel Biosciences Corp. Marvel employs a "drug redevelopment" approach, creating new synthetic chemical derivatives of known, off-patent drugs to target new disease indications. MB-204 inhibits the A2a adenosine receptor and has potential applications in treating neurological diseases such as depression, anxiety, Alzheimer's, and ADHD, as well as non-neurological conditions like cancer and non-alcoholic steatohepatitis.
