MindMed Secures $50.0 Million Credit Facility with K2 HealthVentures
– Enhances financial flexibility through multiple clinical catalysts on MM-120 and MM-402 product candidates
– The Company’s ending 2Q2023 cash and cash equivalents of $116.9 million and committed credit facility are expected to fund operations into 2026, if certain milestones are achieved that unlock additional capital
– $15.0 million drawn at loan closing
NEW YORK–(BUSINESS WIRE)–Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED), (the “Company” or “MindMed”), a clinical stage biopharmaceutical company developing novel product candidates to treat brain health disorders, today announced that it has entered into a senior secured credit facility with K2 HealthVentures, a healthcare-focused specialty finance company.
“We are thrilled to announce this agreement with K2 HealthVentures, a premier partner in the life sciences industry known for strategic investments in promising healthcare companies,” said Robert Barrow, Chief Executive Officer and Director of MindMed. “This transaction strengthens our balance sheet and provides us with additional operational and strategic flexibility as we enter a very exciting period for MindMed. We have several upcoming value inflection points such as the topline readout of our Phase 2b study of MM-120 for the treatment of generalized anxiety disorder later this year.”
Austin Sherwindt, Managing Director at K2 HealthVentures, stated: “We are pleased to enter into this financing partnership with MindMed as it advances its portfolio of product candidates across an array of disorders of the brain where there are significant unmet medical needs. We believe in the long-term potential of MindMed’s pipeline and look forward to working with the Company to reach its critical development milestones.”
Upon closing, $15.0 million of the $50.0 million loan facility was funded. Additional funding amounts of up to an aggregate of $20.0 million may be drawn over the course of the loan term, in each case subject to certain milestones being achieved. An additional tranche of $15.0 million is also available, subject to the mutual discretion of the Company and lender. Even if such additional funds become available, the Company is under no obligation to draw funds in the future. Borrowings under the credit facility mature on August 1, 2027. Additional details of the credit facility are filed with the Securities and Exchange Commission on a Current Report on Form 8-K of the Company filed on August 14, 2023.
About MindMed
MindMed is a clinical stage biopharmaceutical company developing novel product candidates to treat brain health disorders. Our mission is to be the global leader in the development and delivery of treatments that unlock new opportunities to improve patient outcomes. We are developing a pipeline of innovative product candidates, with and without acute perceptual effects, targeting neurotransmitter pathways that play key roles in brain health disorders.
MindMed trades on NASDAQ under the symbol MNMD and on the Canadian NEO Exchange under the symbol MMED.
About K2 HealthVentures
K2 HealthVentures is an alternative investment firm focused on providing flexible, long-term financing solutions to innovative private and public companies in the life sciences and healthcare industries. The investment team comprises collaborative, experienced professionals with diverse backgrounds in finance and operations, as well as deep domain knowledge across various healthcare sectors. A uniquely flexible, permanent capital structure enables the firm to provide creative, adaptive financing solutions and meet the evolving capital needs of its portfolio companies as they grow. K2 HealthVentures is driven by dual goals of Profit and Purpose—aiming to fuel the growth of innovative companies that will ultimately improve the lives of patients and giving a percentage of investment profits back to underserved areas in healthcare. www.k2hv.com.
