- The Champignon Brands Offering Included the Full Exercise of Options Granted to the Deal’s Underwriters
- Proceeds of the Financing Will Allow the Psychedelics Leader to Accelerate its North American Clinical Expansion Program
- Today’s Bullish Announcement from Champignon Was Offset By the Broad Market’s 7% Correction and May Have Actually Created a Very Attractive Opportunity for Psychedelics Investors
Champignon Brands (CSE: SHRM) (OTCQB: SHRMF) (FRA: 496) announced today the closing of the company’s previously announced bought deal private placement including the full exercise of the option granted to the underwriters of the offering.
Champignon Brands, a human optimization sciences company with an emphasis on ketamine and psychedelic medicine, intends to use the financing’s aggregate gross proceeds of $15,000,375 to accelerate its North American clinical expansion program and for general working capital purposes.
In total, 17,647,500 units were sold in the offering at $0.85 per unit. Each unit consists of one common share and one-half common share purchase warrant allowing warrant holders to purchase one common share at $1.15 per warrant share until June 11, 2022.
The bought deal private placement was completed by a syndicate of underwriters co-led by Canaccord Genuity and Eight Capital. The offering syndicate also included Gravitas. All securities issued in the financing are subject to a statutory four-month and one day hold period.
Video Source: Champignon Brands YouTube
SHRM Stock Price Action & Chart
With the broad financial market experiencing a significant and possibly overdue correction today, shares are down across the board in all sectors. Great investors often use these types of pullbacks to establish new positions or add to existing positions at attractive prices.
Shares of Champignon Brands (CSE: SHRM) would have likely jumped today on bullish news of the completed bought deal financing, but the timing of the announcement happened to come as the overall market dropped around 7%. The long term optics of Champignon and the psychedelics sector as a whole have never been stronger, making this an ideal time to consider SHRM as an investment opportunity.
Looking at the SHRM technical chart below, you’ll clearly see the stock has excellent liquidity trading nearly 3 million shares per day on average. SHRM is now trading around its strong support level in the $1 range, the same point which previously served as resistance in the lead up to the stock’s massive breakout en route to hitting an all-time high of $2.40.
In this scenario, following a breakout, the previous resistance point will typically serve as a new point of support. Also, SHRM has reached a point where the Relative Strength Index (RSI) is entering oversold territory, thus making a case for SHRM being an attractive buying opportunity even stronger.
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Champignon Brands is a paid client of The Cannabis Investor. The Cannabis Investor holds a position in Champignon Brands.
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