On November 10, 2023, Cybin Inc., a leading biotech company specializing in clinical-stage psychedelics, announced the launch of a unique underwritten offering. This offering consists of 66.66 million units and is available to both its largest institutional shareholder and new institutional investors. The unit price has been set at $0.45, and the offering is scheduled to close around November 15, 2023. Alliance Global Partners has been appointed as the sole book-running manager for this offering.
The primary objective of this offering is to raise up to $64 million in funds. Upon the closing of the offering, $30 million will be fully funded, with the potential for an additional $34 million to be funded if the warrants are fully exercised. Each unit in this offering will consist of one capital common share and one common share purchase warrant. The warrant will allow the holder to acquire one capital common share for $0.51. This warrant can be exercised starting six months after issuance and will remain valid for 60 months.
Cybin has expressed its intention to utilize the net proceeds from this offering to advance its CYB003 and deuterated DMT programs. Additionally, the funds will be allocated towards general corporate purposes and working capital requirements. However, the completion of this offering is contingent upon various customary conditions, including market conditions and the approval of the Neo Exchange, now known as Cboe Canada.