BetterLife Pharma Secures CAD $2 Million in New Capital to Complete BETR-001 FDA IND Filing

Executive Summary

• BetterLife Pharma Inc. closed a CAD $2,000,000 convertible debenture financing to fund remaining IND-enabling work for its lead candidate, BETR-001, while sharpening its strategic focus on neurological pain indications.
• The financing carries a 10% annual interest rate, matures on June 1, 2027, and converts at CAD $0.06 per unit, with each unit including a common share and a warrant exercisable at CAD $0.10 for three years.
• Proceeds will support the completion of IND-enabling studies and general working capital as the company advances toward an Investigational New Drug filing for cluster headache and migraine, following the recent appointment of Doug Drysdale as Executive Chairman.

Key Details

• Financing Structure & Terms: CAD $2,000,000 convertible debenture; 10% interest per annum; maturity date of June 1, 2027.
• Conversion & Warrant Terms: Convertible at holder's option at CAD $0.06 per unit; each unit comprises one common share and one share purchase warrant exercisable at CAD $0.10 for three years from issuance.
• Use of Proceeds: Net proceeds allocated to completing remaining IND-enabling activities for BETR-001 and general working capital to progress toward an IND filing.
• Related Party Transaction: A director and insider subscribed for the full $2,000,000; conversion subject to a 19.9% ownership cap absent shareholder approval; relied on MI 61-101 exemptions (Sections 5.5(a) and 5.7(1)(a)) as fair market value does not exceed 25% of market capitalization.
• Regulatory & Listing Conditions: Closed without filing a material change report >21 days prior to secure terms; all issued securities subject to a 4-month-1-day statutory hold period under Canadian securities laws.
• Pipeline & Development Status: BETR-001 is a non-hallucinogenic, second-generation LSD-derivative with a USPTO composition-of-matter patent; completed FDA pre-IND meeting and most required IND-enabling studies; near-term development concentrated on neurological pain, specifically cluster headache and migraine.
• Corporate Actions: Issued 100,000 common shares for corporate advisor services; granted 3,250,000 stock options to officers at a $0.065 exercise price, with quarterly vesting over 24 months and an expiration date of June 15, 2036.
• Leadership Changes: Doug Drysdale appointed Executive Chairman and Director on May 13, 2026; brings prior experience as CEO of Cybin Inc., builder of Alvogen, and turnaround leader at Pernix Therapeutics and Tedor Pharma.

Notable Quotes

• "This capital keeps BETR-001 moving toward the clinic. Our plan is straightforward. Focus the program on a defined set of neurological pain indications, complete the IND-enabling work, and file. I have built and run programs that reach the clinic on tight timelines, and that is the discipline we are bringing here." – Doug Drysdale, Executive Chairman
• "This financing strengthens our balance sheet and lets us keep BETR-001 moving without distraction. With strengthened leadership and the focus to drive the program toward an IND filing, we are concentrating our efforts where the science and the unmet need are clearest." – Dr. Ahmad Doroudian, Chief Executive Officer