Mindset Pharma (MSET.C) announced they have completed their $7.5 million “bought deal” public offering.
The offering issued 10,000,000 units sold at $0.75 each. Each unit granted the buyer one share and one warrant, exercisable at $1.10 over the next 36 months.
Mindset also granted the underwriters an over-allotment option, allowing them to purchase an additional 1,500,000 units over the next thirty days, which would bring in an additional $1,125,000 for MSET.
This influx of cash into Mindsets balance books comes after they expanded their scientific team at the end of March. Mindset brought in Dr. Malik Slassi to be Senior Vice President of Innovation and appointed Mr. Ian Dean as Director of Preclinical Development.
“Mindset is one of the few truly innovative discovery research and development engines in the emerging medical psychedelic field, which represents a promising potential commercial opportunity in the treatment of mental health disorders. I am pleased to contribute to our leadership team as we focus on strengthening Mindset’s patent portfolio of novel products. Mindset’s strategy of maximizing the value of its pipeline through clinical validation has the potential to transform the patient journey in managing a range of mental health indications,” commented Dr. Slassi, the new Senior VP of Innovation.
Mindset’s stated goal is to create novel and patentable psychedelic compounds for the treatment of neurological and psychiatric disorders.
They currently have three patent-pending psilocybin-inspired drug families, as well as one inspired by DMT. They focus on providing synthetic alternatives to magic mushrooms for a variety of reasons.
The chief concern is the inconsistent level of psilocybin in naturally grown mushrooms. When using a compound medically, doctors and therapists need to have confidence in the consistency of the doses they are administering. They can’t just roll dice and see what happens.
Synthesizing psychedelic compounds can also allow the developers to have more control over the speed at which the effects come on and how long the psychedelic experience lasts.
It will be interesting to see if the underwriters exercise their over-allotment option, as MSET is currently trading under the unit price.
Following the news, Mindset’s share price is down 7 cents to $0.42.
Full disclosure: Mindset Pharma is not a client, but there have been some discussions.