In a statement, New York-based MindMed said it has entered into an agreement with lead underwriter Canaccord Genuity Corp and a syndicate of underwriters to purchase 23,810,000 units at C$1.05 apiece.
Each unit shall consist of one subordinate voting share and one-half of one subordinate share purchase warrant, exercisable to acquire one subordinate voting share at C$1.40 apiece for a period of 36 months from the closing of the offering.
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MindMed said it has granted the underwriters an option to purchase up to an additional 3,571,500 units at the issue price, exercisable at any time, for a period of 30 days after and including the closing date. Such a move would result in additional proceeds of C$3,750,075. The over-allotment option is exercisable to acquire units, subordinate voting shares, and/or warrants (or any combination thereof) at the discretion of the lead underwriter.
The underwriters are to be paid a cash commission equal to 6% of the gross proceeds and to receive unit purchase warrants equal to 6% of the number of units sold, with each underwriters' warrant being exercisable to acquire one unit at the issue price for 36 months from the closing slated for October 30.
Part of the proceeds from the offering will help fund ongoing research and development work on psilocybin in collaboration with the University Hospital Basel's Liechti Lab in Switzerland to better understand and compare the altered states of consciousness induced by psilocybin and LSD. Also, the money will go towards the development of 18-MC, a non-hallucinogenic molecule derivative of ibogaine from the African plant iboga, as a way to treat opioid use disorder.
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