Optimi Health Bolsters Financial Position with Private Placement and Debt Settlement

Optimi Health Corp. (CSE: OPTI) (OTCQX: OPTHF) (FSE: 8BN), a Health Canada-licensed psychedelics pharmaceutical manufacturer specializing in botanical psilocybin and MDMA, has announced the closing of a non-brokered private placement and a debt settlement. These transactions have significantly enhanced the company's financial stability and liquidity, positioning it for future growth and expansion.



Private Placement Details and Impact

Optimi Health closed the second and final tranche of its non-brokered private placement, issuing 1,316,668 units at CAD$0.30 per unit for gross proceeds of CAD$395,000. The total Offering raise amounted to CAD$934,000. Each unit consisted of one common share and one-half of one transferable common share purchase warrant, exercisable at CAD$0.40 for two years. The accelerated expiry provision allows the Company to reduce the warrant exercise period if the closing price of its common shares exceeds CAD$0.50 for 20 consecutive trading days.

The net proceeds from the Offering will be used for general working capital purposes, obtaining a Drug Establishment License, and facilitating commercialization. These strategic allocations will enable Optimi Health to maintain its day-to-day operations, invest in long-term growth initiatives, and expand its market reach.



Debt Settlement and Financial Improvement

Optimi Health also completed a debt settlement with two creditors, retiring an aggregate of CAD$98,501.25 of indebtedness in consideration for the issuance of 458,145 common shares at a deemed price per common share of CAD$0.215. This transaction has reduced the Company's outstanding debt, lowering its interest expenses and improving its short-term liquidity.

The debt settlement, combined with the private placement, has significantly enhanced Optimi Health's financial position. By reducing debt obligations and raising capital, the Company has strengthened its balance sheet and improved its ability to navigate market uncertainties and pursue growth opportunities.

Insider Participation and Strategic Alignment

The Offering was subscribed to by insiders, with the issuance of units to insiders considered a related party transaction under Multilateral Instrument 61-101. The Company relied on exemptions from the formal valuation requirements and minority shareholder approval requirements, as the fair market value of the transaction did not exceed 25% of the Company's market capitalization.

Insider participation in the private placement demonstrates the confidence and commitment of key stakeholders, such as JJ Wilson and Dane Stevens, in the company's mission and future prospects. By investing in the company, these insiders are signaling their belief in the potential of Optimi's psychedelic products and their commitment to delivering significant value to patients, customers, and shareholders.

In conclusion, Optimi Health's closing of the non-brokered private placement and debt settlement has significantly enhanced the company's financial stability and liquidity, positioning it for future growth and expansion. The strategic allocation of proceeds, combined with insider participation, underscores the Company's commitment to its mission and its potential for long-term success in the psychedelics market.