Canadian psychedelics biotech Cybin Inc. (NYSE:CYBN) entered into a common share purchase agreement with institutional investor Lincoln Park Capital Fund (LPC) for the sale of up to $30 million (CA$41) of its common shares within a 36-month period.
CEO Doug Drysdale says the equity facility will allow Cybin to “further strengthen” its cash position by accessing capital on an as-needed basis, using the best market conditions and providing the company with “additional runway” to advance its drug development programs.
See also: Psychedelics For Major Depressive Disorder And Anxiety Disorders: Data Suggests Cybin’s Deuterated Analogs Could Work
Following LPC’s obligation to purchase common shares from Cybin under the deal, the company issued 2,538,844 common shares to the investor as a commitment fee.
Under the agreement, which does not include warrants, derivatives or any other share classes, common shares price will be based on the market price at the time of each sale. Cybin holds the right to control the timing and amount of share sales and ultimately is entitled to terminate the agreement at any time at no cost or penalty.
The common share sales will be made pursuant to and qualified by way of a prospectus supplement to Cybin’s base shelf prospectus dated July 5, 2021, filed with the securities commissions in each of the Canadian provinces and territories, and was also filed with the U.S. SEC as part of a registration statement on Form F-10 declared effective on October 8, 2021.
No offers or sales of any common shares will be made in Canada or on the NEO Exchange pursuant to the agreement or the supplement and accompanying base prospectus.
Photo: Benzinga edit with photo by chrissmith12 and Bru-nO on Pixabay.
