NovAccess Global Inc. (OTC:XSNX) Stock Rallies 15%: But Why?

Investors who may be currently interested in biomedical companies could do well to take a closer look into NovAccess Global Inc. (OTC:XSNX). The company is involved in the development of immunotherapies for those suffering from brain tumors. On January 2, the company announced that it had entered into a securities purchase agreement with an affiliate of the firm Sumner Global LLC.

Due to the arrangement, the company managed to raise total financing to the tune of $10.7 million. As per the terms of the agreement, Sumner Global would pick up 33 million freshly issued shares of the NovAccess Global unregistered common stock for the price of $0.11 each. That would result in a cash investment to the tune of $3.63 million and would be payable at any point on or prior to January 31, 2024.

Sumner also agreed to make an investment of $7.05 million more through a convertible note in two tranches. The first tranche would be worth $3.05 million on February 15, 2024, and the second tranche would be worth $4 million on March 15, 2024. It was also noted that the notes could be converted to shares at a rate of $0.11 per share. Dr. Dwain K. Irvin, the Chief Executive Officer of NovAccess Global, spoke about the latest developments as well. He noted that as many as 20,000 people are diagnosed with malignant brain tumors in the United States every year.

Calling the latest infusion of capital the most significant round of financing to date, Irvin noted that it would allow NovAccess Global to work on coming up with forms of immunotherapy that could be potentially more effective in the treatment of patients suffering from malignant brain tumors. Sumner is a company with a global footprint and is well-known for having created value across diverse industries.