Innovation-driven drug Development Company devoted to therapeutic powers of cannabinoids, Vitality Biopharma (OTCMKTS:VBIO) on August 20, 2021, announced the firm entering into a definitive agreement with an institutional investor for equity line financing of $5,000,000.
Once the registration statement is effective, the institutional investor will need to buy the common stock delivered by the firm until December 31, 2022, at price equal to 85% of its lowest daily volume-weighted average price. Vitality Biopharma is expecting proceeds for advancing its leading prodrug candidate, VBX-100. The drug, a glycosylated cannabinoid, uses its proprietary enzymatic bioprocessing technologies, was permitted Orphan Drug Designation by FDA for treating pediatric ulcerative colitis.
Michael Cavanaugh, Chief Executive Officer of Vitality, said that the management team has implemented a three-pronged corporate recovery plan for resuming ordinary course trading of its common stock, bolstering balance sheet as well as invest in drug development.
The CEO added that the $5 million equity line financing will give critical funding imperative for supporting the transition into the value creation phase of its strategic plan, with a focus on advancing VBX-100 prodrug through preclinical studies.
Furthermore, Vitality feels that the financing is structured in a way allowing the firm to get capital on a need basis for minimizing dilution as well as harnessing return on invested capital.