Cybin plans to use the net proceeds for the progression of the company’s CYB003 and deuterated DMT programs
Cybin on Nov. 14 said it closed a previously announced underwritten offering led by one of the company’s largest institutional investors.
Cybin, a clinical-stage biopharmaceutical firm focusing on psychedelic treatments, issued nearly 66.7 million units priced at 45 cents per unit, raising $30 million. All figures are in U.S. dollars.
Each unit is comprised of one common share and one purchase warrant, which can be exercised to acquire one common share at 51 cents per share.
The warrants are redeemable any time six months after issuance until May 14, 2029, “subject to acceleration in certain circumstances,” according to the company.
Shares of Cybin, which trades under the “CYBN” ticker symbol, closed at .455 cents on the NYSE American stock exchange on Wednesday, Nov. 15.
On the heels of upbeat results from the company’s Phase 2 psilocybin trial, Cybin CEO Doug Drysdale said “Q4 of 2023 and 2024 will be pivotal … as we expect top-line clinical-data readouts from both our Phase 1/2a trial of CYB003, our deuterated psilocybin analog, and from our Phase 1 trial of CYB004 and SPL028, our deuterated DMT programs.”
“With the current financing, led by one of the company’s largest institutional shareholders, and a combination of the company’s current cash position, current at-the-market offering and assuming exercise in full of the warrants issued as part of the units, the company has access to over US $100 million,” Drysdale said in a news release. “This capital is expected to provide Cybin with the cash runway needed to complete these value-driving clinical milestones and enable us to continue focusing on clinical execution with the ultimate goal of bringing improved therapeutic options to patients in need.”
A.G.P./Alliance Global Partners acted as the sole book-running manager for the offering.
Cybin said it intends to use the net proceeds from the offering for the progression of the company’s CYB003 and deuterated DMT programs, and for general corporate and working-capital purposes.