Cybin on March 19 said it has closed an oversubscribed private placement of 348.8 million shares of common stock at 43 cents per share.
Institutional money continues to flow into the psychedelic health-care space.
Cybin on March 19 said it has closed an oversubscribed private placement of 348.8 million shares of common stock at 43 cents per share.
Before subtracting fees and expenses related to the stock offering, the private placement raised $150 million, according to the company.
The company said it expects to use the net proceeds to fund Phase 3 drug-development activities for CYB003, Cybin’s proprietary deuterated psilocybin analog for the adjunctive treatment of major depressive disorder. The FDA recently granted breakthrough-therapy designation for the psychedelic molecule.
The company noted it also will use the funds for working capital and “general corporate purposes.”
“We are extremely grateful for this infusion of capital, which will enable us to continue advancing our next-generation psychedelic development programs,” Cybin CEO Doug Drysdale said. “We are especially encouraged by the level of interest and support from a high-quality syndicate of investors – all of which validates our clinical findings to date and the promise of addressing the unmet need across mental-health disorders.”
The oversubscribed private placement was led by Deep Track Capital and included participation from RA Capital Management, Avidity Partners, Acorn Bioventures, Altium Capital, Logos Capital, Octagon Capital, Rosalind Advisors, Sphera Healthcare and other institutional investors, according to Cybin.
Bloom Burton Securities Inc. acted as the lead agent for the private placement, which also included Haywood Securities Inc.