MindMed Rakes It In Over A Wild Week of Financings

It should be no surprise to anyone in the psychedelic medicine space that financial headlines are becoming more and more frequent. Indeed, yesterday we saw Mindset Pharma close a $4.17 million deal. However, this week has been especially lucrative for MindMed. The psychedelic pharmaceutical company just announced an update to their already substantial bought deal public offering, which is now an C$80 million financing agreement. Tracking MindMed’s wild week of financial victories speaks to the business prowess within this industry, which ultimately translates to progress within neuropharmacology and biotechnology. Indeed, this week’s success is tied together by an update to Project Lucy – the company’s LSD-focused endeavor towards the treatment of anxiety disorders.

A Huge Week for Psychedelic Medicine

MindMed’s week of economic advances can be traced back to December 11th, when MindMed announced the closing of their previous C$3.45 million bought deal with Canaccord Genuity Corp. and Eight Capital. Readers will recall this deal’s over allotment option was fully exercised, and ultimately, the company closed this deal with gross proceeds over C$120 million. At that point, MindMed had raised CAD $121.4m (USD $94.8m) in investment capital.

Entering this week, on the morning of Monday December 14th, MindMed announced the completion of a pre-IND (Investigational New Drug) meeting with the FDA regarding Project Lucy. Similarly, it was announced that MindMed had completed analyzing the preliminary data behind 18-MC (the company’s ibogaine-derivative) which will be used for an addiction treatment program. This 18-MC clinical effort is known as Project Layla, and like Project Lucy, this announcement brings MindMed closer to the next clinical trial in line. While the therapeutic and clinical aspects of Project Lucy and Project Layla will be covered in a separate story, it’s important to note that this news majorly perked the ears of investors. The company’s stock increased dramatically.

In fact, later that day, MindMed announced a $50 million bought deal public offering, this time solely with Canaccord Genuity Corp. The company’s financing agreement is a 6 for 6 deal where Canaccord bought an aggregate of 11,364,000 units of MindMed at C$4.40 per unit (gross proceeds at this point are C$50,001,600).

The following day, on Dec. 16th, this announcement was updated to an C$80 million bought deal public offering. Yes, for the second time this month, MindMed announced a major upsize to a bought deal. The lead underwriter from Canaccord Genuity Group (an investment bank), along with a syndicate of underwriters, agreed to buying 18,200,000 units of MindMed at C$4.40 per Unit (gross proceeds now being C$80,080,000). This short form prospectus deal illustrates a huge appetite to buy MindMed stock amongst investors. The new price offering was done at a huge discount.

mindmed rakes it in during wild week of financings

Moving Forward with the Agreement

If this bought deal is eventually announced as closed, MindMed will still have raised gross proceeds over C$200 million since the company’s founding. The deal is expected to close on January 5th, 2021. According to the announcement, the net proceeds will be used for investment behind “Project Lucy, Albert (the Company’s digital medicine division), additional microdosing research and development, Project Layla (18-MC) as well as general working capital.”

mindmed rakes it in during wild week of financings

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Microdose Psychedelic Insights

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