Toronto, ON – November 3, 2025 - PharmAla Biotech Holdings Inc. (“PharmAla” or the “Company”) (CSE: MDMA) (OTCQB:MDXXF), a biotechnology company focused on the research, development, and manufacturing of novel MDXX class molecules (including its LaNeo™ MDMA), is pleased to announce that it has filed its final short form base shelf prospectus (the “Prospectus”) to provide the Company with the flexibility to take advantage of financing opportunities and favourable market conditions, if and when needed, during the 25-month period that the Prospectus remains effective (the “Effective Period”). A copy of the Prospectus may be obtained under the Company’s SEDAR+ profile at www.sedarplus.ca.
The Prospectus has been filed in each of the provinces and territories in Canada. The Prospectus will enable the Company to offer, issue and sell, from time to time, common shares, warrants, units, subscription receipts, debt securities, or any combination of such securities (collectively, “Securities”).
The Company may also use the Prospectus in connection with an “at-the-market distribution” in accordance with applicable securities laws, which would permit the Securities to be sold on behalf of the Company through the Canadian Securities Exchange (the “CSE”) (or other existing trading markets) as further described in the applicable prospectus supplement. To date, no agreement has been entered into with respect to such a distribution.
PharmAla currently has no immediate plans to issue any Securities under the Prospectus at this time and may never proceed with any such issuance. Should the Company decide to offer Securities, the specific terms, including the use of proceeds, will be set forth in a prospectus supplement to the final base shelf prospectus, which will be filed with the applicable Canadian securities regulators.
PharmAla Signs Term Sheet with Radium Capital
PharmAla is furthermore pleased to announce that its subsidiary, PharmAla Biotech Australia Pty Ltd (“PharmAla Australia”), has signed a term sheet with Radium Capital (“Radium”), providing PharmAla Australia with a loan facility leveraging its estimated Research and Development Tax Incentive (“RDTI”) refunds. As PharmAla Australia has not yet commenced operations in Australia, no tranches of the RDTI loan facility have been drawn upon. Once PharmAla Australia has commenced to incur qualifying expenses, Radium will advance up to 80% of the expected RDTI refund in the form of a tranche of the loan facility. Each tranche will be secured solely by the related RDTI refund.
“The loan facility with Radium, presents an opportunity to develop our intellectual property, without exposing our intellectual property itself to securitization risk,” said Nick Kadysh, CEO, PharmAla Biotech. “Pursuing our clinical trial work in Australia through PharmAla Australia aligns us with existing research partners and the commercial strategy of our joint venture, Cortexa, and will – If successful – generate substantial outsize returns for investors. As a zero-debt business, we believe that working with Radium is a smart mechanism to drive speed in our R&D efforts.”
The Company expects that concurrent with its first drawn tranche on the loan facility PharmAla Australia will execute a Master Finance Agreement (“MFA”), which will increase the available funding up to 85% of the expected RDTI refund and provide for a reduced interest rate and settlement fee.
“Although we are just on the precipice of commencing our Clinical Trial work, we believe securing efficient, low-risk debt funding will help us optimize our future tax incentives,” said Will Avery, CFO, “Strategic partners, such as Radium, help us drive the cost efficiency we are seeking in our planned Australian clinical trials.”
PharmAla Biotech Holdings Inc. (CSE: MDMA) is a biotechnology company focused on the research, development, and manufacturing of MDXX class molecules, including MDMA. PharmAla was founded with a dual focus: alleviating the global backlog of generic, clinical-grade MDMA to enable clinical trials, and to develop novel drugs in the same class. PharmAla is a “regulatory first” organization, formed under the principle that true success in the psychedelics industry will only be achieved through excellent relationships with regulators. Our team of dedicated professionals includes regulatory experts, scientists, and biomanufacturing professionals. PharmAla has built what it believes to be North America’s first cGMP MDMA value chain, encompassing GMP manufacturing of Active Pharmaceutical Ingredient (API), and drug product formulation. PharmAla’s research and development unit has also begun preclinical research into two patented Novel Chemical Entities (NCEs) based on MDXX class molecules, with proof-of-concept research currently ongoing at the University of Arkansas Medical School.
Nicholas Kadysh, CEO
press@pharmala.ca