With two potentially significant clinical trials (CYB-003 novel psilocybin and CYB-004 DMT) Cybin has been steadily building a solid portfolio of psychedelic candidates. However, like all companies in the space, cash considerations are becoming an issue during this extended market downturn. This is why Cybin’s announcement of $30 million in capital access is good news for the company and investors.

Cybin’s most recent financial results showed cash on hand of C$20 million as of February 14, 2023, with net losses of C$10.7 million for the quarter ended December 31, 2022 — which gives the company approximately two quarters of cash left. The financial clock was beginning to tick.

This new agreement with Lincoln Park Capital Fund should help ease some of this pressure.

Cybin has the right to sell, and Lincoln Park Capital Fund (LPC) is obligated to purchase, up to US$30 million (CAD$41 million) of common shares over a 36-month period at current market prices. This gives Cybin access to capital when they need it and some flexibility in choosing the right market conditions.

“This committed equity facility by LPC provides us with access to capital on an as-needed basis and is expected to allow Cybin to best utilize market conditions to raise capital in support of our drug development programs,” said Doug Drysdale, Chief Executive Officer of Cybin.

This capital access should extend Cybin’s runway to over a year, giving them time to see results from their lead CYB-003 trial.

See the full press release below.

Cybin Announces US$30M Common Stock Purchase Agreement from Lincoln Park Capital Fund

– Share purchase agreement further strengthens Company’s position to deliver on value-driving clinical milestones –

May 30, 2023 05:46 PM Eastern Daylight Time

TORONTO–(BUSINESS WIRE)–Cybin Inc. (NEO:CYBN) (NYSE American: CYBN) (“Cybin” or the “Company”), a clinical-stage biopharmaceutical company committed to revolutionizing mental healthcare by developing new and innovative psychedelic-based treatment options, is pleased to announce that it has entered into a common share purchase agreement (the “Agreement”) with Lincoln Park Capital Fund, LLC (“LPC”), an institutional investor.

Subject to the terms and conditions of the Agreement, Cybin has the right to sell, and LPC is obligated to purchase, up to US$30 million (CAD$41 million) of the Company’s common shares over a 36-month period at prices that are based on the market price at the time of each sale to LPC. Cybin, in its sole discretion, controls the timing and amount of all sales of common shares under the Agreement, and there are no warrants, derivatives, or other share classes associated with this Agreement.

“This committed equity facility by LPC provides us with access to capital on an as-needed basis and is expected to allow Cybin to best utilize market conditions to raise capital in support of our drug development programs,” said Doug Drysdale, Chief Executive Officer of Cybin. “The ability to further strengthen our cash position through sales of common shares to LPC under this facility provides additional runway for our success moving forward.”

Cybin has the right to terminate the Agreement at any time at no cost or penalty. LPC has agreed not to engage in any short selling or hedging activity of any kind in the Company’s common shares. As consideration for LPC’s obligation to purchase common shares from Cybin at our direction under this Agreement, Cybin has issued 2,538,844 common shares to LPC as a commitment fee.

The sale of common shares under the Agreement will be made pursuant to and qualified by way of a prospectus supplement, dated May 30, 2023 (the “Supplement”), to the Company’s short form base shelf prospectus dated July 5, 2021 (the “Base Prospectus”) filed with the securities commissions in each of the provinces and territories of Canada. The Supplement was also filed with the United States Securities and Exchange Commission (the “SEC”), as part of a registration statement on Form F-10, which was declared effective by the SEC on October 8, 2021, in accordance with the Multijurisdictional Disclosure System established between Canada and the United States. No offers or sales of any common shares will be made in Canada or on the NEO Exchange pursuant to the Agreement or the Supplement and accompanying Base Prospectus.

The Supplement and accompanying Base Prospectus contain important detailed information about the Agreement. The Agreement, the Supplement and accompanying Base Prospectus can be found under the Company’s profile on SEDAR at www.sedar.com

 and with the SEC on EDGAR at www.sec.gov.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Cybin

Cybin is a clinical-stage biopharmaceutical company on a mission to create safe and effective psychedelic-based therapeutics to address the large unmet need for new and innovative treatment options for people who suffer from mental health conditions.

Cybin’s goal of revolutionizing mental healthcare is supported by a network of world-class partners and internationally recognized scientists aimed at progressing proprietary drug discovery platforms, innovative drug delivery systems, and novel formulation approaches and treatment regimens. The Company is currently developing CYB003, a proprietary deuterated psilocybin analog for the treatment of major depressive disorder and CYB004, a proprietary deuterated DMT molecule for generalized anxiety disorder and has a research pipeline of investigational psychedelic-based compounds.

Headquartered in Canada and founded in 2019, Cybin is operational in Canada, the United States, the United Kingdom, the Netherlands and Ireland. For company updates and to learn more about Cybin, visit www.cybin.com or follow the team on Twitter, LinkedIn, YouTube and Instagram.