Numinus to Sell C$10M Worth of New Shares Through Equity Program

The exact number of shares to be sold will be determined by Numinus' financier.

Vancouver, British Columbia-based psychedelics company Numinus Wellness Inc. (TSX: NUMI) (OTCQX: NUMIF) on Tuesday announced that it will attempt to raise C$10 million by selling more common shares through an at-the-market equity program.

The exact number of shares to be sold, however, will be determined by Numinus’ financier, Stifel Nicolaus Canada Inc., which holds an “equity distribution agreement” that governs the equity program shares, according to a press release.

The funding mechanism “provides (Numinus) with enhanced flexibility should future additional financing be required, and it may be activated if and as deemed appropriate,” the company said in the release.

Revenue from shares sold will be used “for general corporate purposes (including funding ongoing operations and/or working capital requirements), to repay indebtedness outstanding from time to time, discretionary capital programs and potential future acquisitions,” according to the release.

Based on its recent financials, Numinus likely needs a cash infusion in order to confidently continue operations. In the quarter that ended May 31, Numinus burned through $9.2 million in operating expenditures, posted a net loss of $7.2 million, and was left with $13 million in cash.

Still, the company may be poised for a major breakthrough, if the U.S. Food and Drug Administration gives the green light to its MDMA-assisted therapy next year, as the company hopes.

John Schroyer

John Schroyer has been a reporter since 2006, initially with a focus on politics, and covered the 2012 Colorado campaign to legalize marijuana. He has written about the cannabis industry specifically since 2014, after being on hand for the first-ever legal cannabis sales on New Year’s Day that year in Denver. John has covered subsequent marijuana market launches in California and Illinois, has written about every aspect of the marijuana trade, and was part of the team that built the cannabis industry’s first-ever trade show, MJBizCon. He joined Green Market Report in 2022.

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