Clinical stage biopharmaceutical Mind Medicine Inc. (Nasdaq: MNMD) has secured a senior credit facility agreement with alternative health care investment firm K2 HealthVentures, the company announced Tuesday.
The deal, MindMed CEO Robert Barrow said, pads the company’s financial position, offering “additional operational and strategic flexibility.” This is particularly timely as the company prepares for the expected topline results of its Phase 2b MM-120 study to treat generalized anxiety disorder later in the year, he said.
K2 HealthVentures also voiced optimism about the new collaboration.
“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,” said Austin Sherwindt, Managing Director at K2 HealthVentures.
Details of the deal reveal an initial $15 million funding from the $50 million loan facility. Depending on the achievement of specific milestones, MindMed has the option to draw additional amounts totaling up to $20 million over the loan’s term. An extra $15 million tranche may also be made available at the joint discretion of both MindMed and the lender.
The company said that there’s no mandatory requirement for it to draw funds in the future. The loan is set to mature on August 1, 2027.