MMEDF - MindMed Raises $25 Million In Bought Deal
Mind Medicine (MindMed) Inc. (OTCQB: MMEDF) has filed a final short form prospectus with the securities commissions or similar authorities in each province of Canada , other than Québec. Pursuant to the underwriting agreement with Canaccord Genuity Corp., the Underwriter has agreed to purchase, as sole bookrunner and underwriter, 23,810,000 units of the company on a “bought deal” basis, at a price per Unit of $1.05 CAD for gross proceeds of $25,000,500 . The offering is expected to close on or about October 30. The shares are currently selling forC$1.14.
MindMed has also granted Canaccord an over-allotment option to purchase up to an additional 15% of the Units at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $3,750,075 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $28,750,575 .
MindMed plans to use the net proceeds for investment in its research and clinical development initiatives, including its 18-MC addiction treatment program derived from the psychedelic ibogaine, lysergic acid diethylamide (LSD) microdose program for Adult ADHD, Project Lucy focused on LSD experiential therapy for anxiety disorders, University Hospital Basel Liechti Lab research and development collaboration, NYU Langone Health Psychedelic Medicine Research Training Program, and for general working capital and corporate development purposes.
NYU Langone Health and NYU Grossman School of Medicine have been early pioneers of clinical research with psychedelic-assisted therapies and psychedelic inspired medicines for substance use disorders and other mental illnesses. Through this funding initiative, MindMed aims to catalyze efforts to recruit and train more psychiatrists and clinical investigators to undertake the necessary research to develop training tools capable of scaling and optimizing the delivery of psychedelic-assisted therapies and psychedelic inspired medicines to millions of patients across the United States .