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.