Tryp Therapeutics Inc. (OTCQB:TRYPF) (CSE:TRYP), a clinical-stage biotechnology company focused on developing intravenous-infused psilocin (the active metabolite of psilocybin) for diseases with high unmet medical needs, has closed its private placement of secured convertible debentures for aggregate gross proceeds of AU$2.4 million ($1.6 million) which represents an oversubscription of AU$400,000 above its minimum placement of AU$2 million. Westar Capital Limited acted as lead manager for the private placement in accordance with the terms of an engagement letter between Westar and the company.

The proceeds of the private placement will be used to advance Tryp's research and development programs and for general working capital purposes.

The private placement constitutes a "related party transaction" as such term is defined under Multilateral Instrument 61-101 Protection of minority security holders in special transactions as a director of the company has participated in the private placement, acquiring aggregate principal amount of AU$100,000 of debentures on the same basis as other subscribers. In addition, this same director is entitled to receive certain fees from Westar in connection with the private placement and the transactions contemplated in the engagement agreement.

Early Warning

In accordance with National Instrument 62-103 - The early warning system and related take-over bid and insider reporting issues, Dr. William Garner will file an early warning report regarding the change in his ownership and control of securities of the company.

Prior to the acquisition of common shares, Dr. Garner beneficially owned or exercised control or direction over 38.4 million common shares and 10 million warrants, representing approximately 39.85% and 50.22% of the issued and outstanding common shares on an undiluted and partially diluted basis, respectively. Dr. Garner acquired an aggregate principal amount of AU$1.2 million of debentures under the private placement. Subsequent to the closing of the private placement, Dr. Garner beneficially owns or exercises control or direction over 38.4 million common shares, 10 million warrants and an aggregate principal amount of AU$1.2 million of debentures, representing approximately 39.85% of the issued and outstanding common shares on an undiluted basis and, assuming that the debentures convert at a price of CA$0.09/share, 64.05% of the issued and outstanding common shares on a partially diluted basis assuming that Dr. Garner exercised all of his warrants and converted all of his debentures and no other holders of convertible securities exercised or converted any of their securities.

Photo by Giorgio Trovato on Unsplash

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