Delic Teams Up With Paradigm To Create Ketamine Toxicology Testing Solution, Raises $7M For Expansion

Author: Jelena Martinovic | September 30, 2021 12:18pm

Psychedelic wellness platform Delic Holdings Corp (CSE:DELC) (OTCQB:DELCF) (FRA:6X0) announced Thursday a first of its kind partnership with Paradigm Healthcare, an independent clinical laboratory located in St. Simons, Georgia that focuses on high complexity clinical toxicology, in order to bring state-of-the-art testing to Ketamine Infusion Centers LLC.

The partnership will ensure KIC access to Paradigm's Benchmark toxicology solution that uses LC/MS/MS test methods to identify and accurately measure drug compounds in the body.

KIC enables Delic to leverage its central hub of psychedelic education, media and information sources to patients seeking psychedelic therapy.

Paradigm's innovative Benchmark test platform will allow KIC to:

Identify the presence of other drugs in the patient's system to avoid potential conflicts with ketamine infusion before the beginning of the treatment. It can also detect very high levels of ketamine and norketamine, thus enabling the creation of a patient-specific treatment with proper ketamine levels being maintained throughout infusion treatment.
The test can also compare ketamine and norketamine levels with analytical data captured from Clinifusion EMR, including benchmarks when treatment started and ended, at what point patients began getting better, and the number of times the patient visited the clinics for treatments.

"Paradigm's Benchmark testing platform brings state-of-the-art drug testing technology and new reporting tools to clinicians who use psychedelics to treat people with serious behavioral health conditions," said Matt Stang, founder and CEO of the Vancouver-based company. "By integrating their state-of-the-art testing capabilities, KIC will be able to provide patients suffering from depression, anxiety, PTSD, and other debilitating conditions the most accurate, personalized ketamine treatment protocol in the industry. "

$7M Funding to Open New Psychedelic Wellness Clinic Locations

In the meantime, Delic Holdings announced that it has secured roughly CA$7 million ($5.53 million) in financing through a private placement with U.S. institutional investor.

The company issued ‎9 million of its units at CA$0.285 per unit and 15,56 million of its pre-funded ‎units at CA$0.2849, under the private placement that closed on Wednesday.

Each unit comprises one subordinate voting share and one subordinate voting share purchase warrant, which grants the holder rights to purchase one ‎additional SV Share at CA$0.38 per share, subject to ‎‎adjustment, at any time on or prior to 5:00 pm ‎on September 28, 2026.

Each pre-funded unit consists of one pre-funded subordinate voting share purchase warrant and one warrant, which entitles the holder to buy one SV Share CA$0.0001 per share and shall terminate upon exercise in full of ‎the pre-funded warrants. ‎‎

H.C. Wainwright & Co. acted as the exclusive placement agent for the transaction, receiving a cash commission of $560,000 or 8% of the gross proceeds of the transaction and 1.96 million compensation warrants, with each agent warrant entitles the holder thereof to purchase one SV Share at CA$0.38 per share at any time on or prior to 5:00 pm on September 28, 2026.

Delic plans to utilize the net proceeds of the private placement for expanding its clinic footprint, operating costs and for acquisitions.