Atai Leans Into IntelGenx

Atai Life Sciences AG (Nasdaq: ATAI) clearly believes in the medical technology from IntelGenx Technologies Corp. (OTC: IGXT) as the company has leaned into its investment. In August, IntelGenX announced that it closed on a private placement from Atai that brought the company roughly $3 million and now that could be increased. Following this transaction, atail will own 63% of the company.

On October 6, 2023, atai and IntelGenx entered into the Second Amendment and the Subscription Agreement Amendments, effective September 30, 2023. According to a company statement, “atai and IntelGenx entered into a second amended and restated loan agreement to provide for the Conversion Feature. In connection with the Call Option, atai and IntelGenx entered into the Subscription Agreement Amendment, pursuant to which IntelGenx granted atai the option to purchase up to an additional 7,401 US Units at any time prior to August 31, 2026.”

IntelGenx is a drug delivery company focused on developing and manufacturing pharmaceutical films. IntelGenx’s manufacturing facility offers full service by providing lab-scale to pilot- and commercial-scale production. Atai has designs on using the film for its psychedelic drug delivery and seems to be locking up IntelGenX’s films for an exclusive arrangement. Atai is listed as working with the company for a DMT oral film product.

Lend First, Buy Later

In March 2021, atai and IntelGenx entered into a loan agreement where atai provided a loan to IntelGenx for $2 million. In September 2021, atai entered into an amended and restated loan agreement, which among other things, increased the principal amount of loans available to IntelGenx by $6 million, up to a total of $8.5 million.

Separately in May 2021, atai bought $12.3 million of stock and warrants in the company.

Cannabis Film Strips

It seemed that at one point Cybin was also working with IntelGenX as well, but may no longer be working with the pharmaceutical company as it isn’t included in a list of companies IntelGenX is working with. IntelGenX also works with Heritage Cannabis for a CBD oral strip product.

In 2018, IntelGenX had agreed to work with Tilray (OTC: TLRY) to develop a cannabis oral strip.  However, in 2021, IntelGenX reported it had initiated an arbitration proceeding against Tilray related to an alleged breach of the parties’ 2018 license, development and supply agreement. In the company’s most recent earnings call, it stated that it was still in arbitration hearings with Tilray

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

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