Mind Medicine Announces $50 Million Bought Deal Financing Days After Raising $34.5 Million
Mind Medicine (NEO: MMED) is raising even more cash. The company this evening announced that they have agreed to conduct a $50.0 million bought deal public offering, lead by Canaccord Genuity Corp. The financing is to be conducted at a price of $4.40 per unit, a significant 21.4% discount to today’s closing price of $5.60.
The offering will see units consist of one subordinate voting share along with a half warrant to purchase one subordinate voting share. Warrants are to be valid for a period of three years from the date of issuance, with an exercise price of $5.75 per share. Warrants are also subject to an accelerated expiry if the volume weighted average price of the equity exceeds $9.00 for a period of five consecutive trading days.
A total of 11,364,000 units of the company are expected to be sold under the offering, with an over allotment option having been granted for an additional 1.7 million units. If exercised in full, the option would bring in an additional $7.5 million to the company. The over allotment option is valid for a period of thirty days following the close of the transaction.
Net proceeds of the offering have been indicated that they will be used for Project Lucy, the firms LSD study; Albert, the firms digital medicine division; Project Layla, the firms 18-MC product; additional microdosing research and development, along with general working capital.
The announcement follows the company closing a $34.5 million financing just last Friday, while simultaneously announcing they currently have approximately $85 million in company coffers.
Mind Medicine last traded at $5.60 on the Neo Exchange.
Information for this briefing was found via Sedar and MindMed. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
