Quebec-based pharmaceutical services company IntelGenx Technologies Corp. (TSXV: IGX) just raised $1 million in new capital via a non-brokered private placement deal with cannabis giant Tilray (NASDAQ: TLRY).
The terms of the private placement saw IntelGenx selling just over 1.4 million common shares to Tilray at a price of $0.70 per share.
According to the company’s official announcement today, a statutory hold period will be in effect on all the common shares sold through the placement, with the hold officially lifting in May of 2019.
Earlier this month, IntelGenx announced a new agreement with Tilray for licensing, supplying, and developing the VersaFilm line of cannabis-infused products. The proceeds raised via today’s announced placement will go directly towards that agreement.
With funding for the project secured, IntelGenx further announced plans to move forward with manufacturing the VersaFilm line, which will be exclusively marketed and distributed through Tilray. IntelGenx meanwhile will receive a fixed royalty on net VersaFilm product sales.
Private placements have been a lucrative means of raising capital for new expansions in the marijuana industry since the Cannabis Act went into effect on Oct. 17.
Last week, Veritas Pharma Inc. (CSE: VRT) raised $1.56 million through a private placement, with the majority of that amount to be used towards purchasing a stake in a new greenhouse in British Columbia.
Aside from the capital raising announcement, IntelGenx also released Q3 2018 financial results to investors, citing total revenue of $700,000 with cash and short-term investments totaling $2.2 million. Chief Executive Officer Dr. Horst G. Zerbe commented:
“This was a landmark quarter, where the company continued to push the frontiers of oral film drug development.”
Dr. Zerbe went on to say, “From the initiation of AD patient recruitment for the Phase 2a Montelukast VersaFilm study, to the generic buccal film product ANDA submission, to executing our definitive agreement with Tilray, many important milestones were achieved as we continue to advance toward bringing multiple exciting VersaFilm™ products to market.”
In related Tilray news, Grizzle’s head of research Scott Willis took a deep dive look at the company’s stock in the US market and how it’s currently affecting marijuana investing, which can be read over here.