Filament Health To Merge With SPAC To Obtain Nasdaq Listing

Filament Health (NEO: FH) is claiming that shareholders are about to receive US$0.85 per share in value following an agreement to merge the company with Jupiter Acquisition Corporation (NASDAQ: JAQC), a special purpose acquisition vehicle, which will enable the company to list on the Nasdaq.

The company has entered into a definitive agreement to merge with Jupiter at a pro-forma enterprise valuation of US$210 million, with Filament being valued at US$176 million prior to the combination – a stark increase to its current market capitalization of approximately C$14.0 million.

The transaction meanwhile is expected to provide Filament with up to US$5.0 million in cash.

Despite the claimed “value” of US$0.85, the company has announced a concurrent private placement to raise proceeds of C$2.0 million at C$0.09 per unit, with each unit containing one common share and one whole warrant. Each warrant is valid for a period of three years at an exercise price of C$0.117 per share.

The lead investment under the offering is to come from Negev Capital, a psychedelic-focused investment fund. Net proceeds from the offering are to be used for Filament’s phase 2 methamphetamine use disorder clinical trial, as well as for corporate purposes.

“Today’s announcement is an important milestone for Filament as we gain access to the broader capital markets needed to advance our drug development platform,” commented Filament Health CEO Ben Lightburn.

Filament Health last traded at $0.08 on the Neo.

Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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