Psychedelic medicine biotech company Mind Medicine (MindMed) Inc. (OTCQB: MMEDF) has entered into an agreement with Canaccord Genuity Corp. to purchase for resale, on a bought deal private placement basis, an aggregate of 6,000,000 units of the Company at a price of C$3.25 per Unit for aggregate gross proceeds to the company of C$19,500,000 or roughly $15.4 million by today’s currency exchange. MindMed said that it is expected that the units will be primarily sold to one large institutional investor.
MindMed said the net proceeds will be used for further investment in Project Lucy (experiential LSD), the Microdose LSD Program, and Project Albert, which is now integrating MindMed’s most recent technology acquisition HealthMode to build a comprehensive mental health platform to deploy psychedelics medicines, and for general working capital purposes. The closing is expected to occur on or about March 9, 2021.
Last month, MindMed said it would acquire HealthMode in a deal valued at approximately C$41,254,180 and the payment of approximately C$300,000 in cash.
MindMed Co-Founder and CEO J.R. Rahn said at the time, “Our mission is to make MindMed as much a digital medicine company as a drug development company. With the addition of Dan and Bradford’s team of engineers and product experts, our digital medicine division, Albert, is now the Special Ops of digital medicine, applying machine learning to drug development and patient care. The future of modern mental healthcare and psychedelic medicine ultimately will rely on improving infrequent, self-reported and observed measures for mental health to a paradigm where the continual digital measurement of our mind and body is as vital as the drug treatment itself. In effect, we see a future mental health treatment paradigm where potential drug products such as our LSD experiential therapy might be prescribed right alongside software application programming interfaces (APIs) to prepare the patient for treatment and optimally monitor the after-care of one’s anxiety disorder.”
Project Lucy is MindMed’s commercial drug development program for the treatment of anxiety disorders. The company said Project Lucy will initiate a Phase 2b human efficacy trial that will focus on experiential doses of LSD, administered by a therapist. This is the first experiential, psychedelic-assisted therapy to be added to the company’s drug development pipeline.
With the launch of Project Lucy, MindMed is now preparing a total of three Phase 2commercial drug trials based on psychedelic-inspired medicines, making it one of the most advanced and largest drug development pipelines in the psychedelics industry.