Mind Medicine (MMED.E) closed a bought deal short-form prospectus offering, issuing 27,381,500 units for $1.05 and brought in $28,750,575 today, according to a press release.
After the financing, the company strengthened their cash position to $50.1 million (or USD$37.8) to allow them to continue their progress with their clinical trials for medicines using psychedelics and experimental therapies.
“The strong institutional investor interest for this oversubscribed financing demonstrates the vast appetite for companies pursuing clinical trials of psychedelic medicines with the FDA and other regulatory bodies. With our sights set on a NASDAQ up-listing, this fresh funding will further assist the MindMed team in our mission to build the most diverse development pipeline of psychedelic inspired medicines and experiential therapies for patients,” said J.R. Rahn, the co-founder and co-CEO of MindMed.
The next step for MMED given the proceeds of the offering include investment in its research and clinical developments, including its 18-MC addiction treatment program using experimental drugs like ibogaine, LSD, microdose program for adult ADHD, Project Lucy, which is focused on LSD experiential therapy for anxiety disorders. They have partnerships with the University Hospital Basel Liechti Lab and the NYU Langone Health for a psychedelic medicine research training program. Also, they intend to use the funds for general working capital and corporate development purposes.
Each unit comprises one subordinate voting share of the company and one-half of one subordinate voting share purchase warrant. Each warrant gives the holder the right purchase one subordinate voting share at $1.40 until Oct. 30, 2023. The warrants will be listed for trading on the NEO Exchange under the symbol MMED.WS, subject to all the usual approvals.