MindMed Will Use the Proceeds of the Offering for Investment in its Digital Medicine Division, for Further Investments in its Project Lucy and Project Layla, for its LSD Micro-Dosing ADHD Trials and for General Working Capital Purposes
MindMed (OTCQB:MMEDF) announced that further to its previously announced offering on December 14 and December 15, 2020, it has filed a preliminary short form prospectus with the securities commissions or similar authorities in each province of Canada, other than Québec. Pursuant to the underwriting agreement among the company, the underwriters Canaccord Genuity and Eight Capital have agreed to purchase 18,200,000 units of the company, on a bought deal basis, at a price per unit of CDN $4.40 for gross proceeds of CDN $80.08 million.
Psychedelic Industry Setting Up For an Even Bigger 2021 Dealmaking is going strong and looks set to continue as mental health becomes a key investment theme going forward.
Money is continuing to flow towards the psychedelic sector as the group has become the hot spot for investors. Despite the issue that any payoff in this industry could be years away, companies are easily raising capital and deals are quickly oversubscribed. The capital raises of 2020 could continue into 2021. Here s an example of some of the deals that have happened in just the past few months. In November, ATAI Life Sciences announced the successful closing of its $125 million Series C financing round, including $32 million of its 2020 convertible debt that converted in connection with the Series C.