Quick Take:

  • MindMed Inc. announced that it has filed a final short form prospectus with the securities commissions in each province of Canada, other than Québec.
  • Pursuant to the underwriting agreement among the company, Canaccord Genuity Corp. and Eight Capital, the underwriters have agreed to purchase 15,800,000 units of the company at a price per unit of $1.90 for gross proceeds of $30.02M.

Mind Medicine (MindMed) Inc. (MMED) (OTCQB: MMEDF) (DE: MMQ) (“MindMed” or the “Company“) is pleased to announce that further to its previously announced offering (the “Offering“), it has filed a final short form prospectus (the “Prospectus“) with the securities commissions or similar authorities in each province of Canada, other than Québec. Pursuant to the underwriting agreement among the Company, Canaccord Genuity Corp. (the “Lead Underwriter“) and Eight Capital (together with the Lead Underwriter, the “Underwriters“), the Underwriters have agreed to purchase 15,800,000 units of the Company (the “Units“), on a “bought deal” basis, at a price per Unit of $1.90 (the “Issue Price“) for gross proceeds of $30,020,000.

The Company has also granted the Underwriters an over-allotment option to purchase up to an additional 15% of the Units at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $4,503,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $34,523,000.

Each Unit will be comprised of one subordinate voting share of the Company (each, a “Subordinate Voting Share“) and one-half of one Subordinate Voting Share purchase warrant (each whole warrant, a “Warrant“). Each Warrant shall entitle the holder thereof to purchase one Subordinate Voting Share at an exercise price of $2.45, for a period of 36 months following the closing of the Offering. If, at any time following the closing of the Offering, the daily volume weighted average trading price of the Subordinate Voting Shares on the NEO Exchange Inc. is greater than $4.00 per Subordinate Voting Share for the preceding 10 consecutive trading days, the Company may, upon providing written notice to the holders of Warrants, accelerate the expiry date of the Warrants to the date that is at least 30 days following the date of such written notice.

The Company intends to use the net proceeds of the Offering for investment in its digital medicine division, additional microdosing research and development as well as general working capital and corporate purposes, including to further fund its ongoing programs.

The Offering is scheduled to close on or about December 11, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.

The Prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in each province of Canada, other than Québec and may be subject to amendment. A copy of the Prospectus can be obtained under the Company’s corporate profile on SEDAR at www.sedar.com.

About MindMed

MindMed is a psychedelic medicine biotech company that discovers, develops and deploys psychedelic inspired medicines and experiential therapies to address addiction and mental illness. The Company is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances including Psilocybin, LSD, MDMA, DMT and an Ibogaine derivative, 18-MC. The MindMed team brings extensive biopharmaceutical experience to the Company’s groundbreaking approach to developing the next generation of psychedelic inspired medicines and experiential therapies.

MindMed trades on the Canadian NEO Exchange under the symbol MMED. MindMed is also traded in the United States under the symbol MMEDF and in Germany under the symbol MMQ. For more information: http://www.mindmed.co/