InMed Pharmaceuticals Inc. (TSX:IN; OTCQX:IMLFF), a fully integrated, cannabinoid-based biopharmaceutical company that leverages its proprietary biosynthesis platform technology to develop novel therapeutics for the treatment of diseases with high unmet medical needs, today announced that it has closed the “bought deal” financing originally announced on June 12, 2018, and that the over-allotment option of the underwriter, Eight Capital, has been exercised in full. The total gross proceeds raised by the Company in the Financing were C$14.95 million.
InMed’s President and Chief Executive Officer, Eric A. Adams, commented, “This financing is expected to fund our most advanced and highest-value programs, specifically our proprietary biosynthesis manufacturing technology and the development of INM-750 for the treatment of Epidermolysis Bullosa.” Mr. Adams continued, “We are confident that the ongoing development of our various programs will lead to the achievement of significant value inflection milestones for the Company. Together with our cash on hand of C$13.88 million as of March 31, 2018, InMed is now well funded for in excess of two years, after factoring in an anticipated significant increase in research and development expenditures.”
Due to high investor demand, the Financing was up-sized from its original amount of C$10 million to C$13 million, and the 15% over-allotment option was exercised in full, bringing the total gross proceeds of the Financing to C$14.95 million.
Under the terms of the Financing, the Company issued a total of 16,611,244 units (the “Units”) at a price per Unit of C$0.90, inclusive of the Units offered in the over-allotment. The Units were offered and issued pursuant to the filing of a prospectus supplement to the Company’s short form base shelf prospectus dated September 11, 2017 (together, the “Prospectus”), filed in the provinces of British Columbia, Alberta and Ontario. Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to acquire one additional Share at a price of C$1.25 for a period of 24 months following the closing date, or June 21, 2020.
The Warrants will be listed on the Toronto Stock Exchange under the symbol “IN.WT” and will commence trading today.
In addition, the Company granted the underwriter 1,106,397 broker warrants, each of which entitles the underwriter to acquire one Share at a price of C$1.05 for a period until June 21, 2020.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.
InMed is a pre-clinical stage biopharmaceutical company that specializes in developing novel therapies through the research and development into the extensive pharmacology of cannabinoids coupled with innovative drug delivery systems. InMed’s proprietary bioinformatics database drug/disease targeting tool, cannabinoid biosynthesis technology and drug development pipeline are the fundamental value drivers of the Company. For more information, visit www.inmedpharma.com.
About INM-750. INM-750 is a proprietary, topical cannabinoid product candidate targeted as a therapy in epidermolysis bullosa (EB) and other potential dermatological and wound-healing applications. It has been specifically designed with the intent to: (i) modify the underlying cause of the disease in certain patients with EB Simplex (EBS, the most common form of EB), and (ii) to treat the major symptoms of the disease in all patients with EB. Preclinical data generated previously demonstrates that INM-750 may have a significant impact on certain symptoms of EB (which may include improvement of wound area to promote healing, reduction in pain, itch and inflammation, and providing antimicrobial activity). These disease hallmarks are key therapeutic targets for the effective treatment of EB as well as several other dermatological conditions. Additionally, our data indicate that INM-750 may have an impact on the underlying disease by increasing the production of certain proteins, called keratins, in the skin.
About Epidermolysis Bullosa (EB). EB is a group of rare diseases that cause fragile, blistering skin. The blisters may appear in response to minor injury, even from heat, rubbing, scratching or adhesive tape. In severe cases, the blisters may occur inside the body, such as the lining of the mouth or the stomach. Most types of epidermolysis bullosa are inherited. The condition usually presents in infancy or early childhood. Epidermolysis bullosa has no cure.
About INM-085. InMed is developing a stimulus-responsive, nanoparticle-laden vehicle for controlled delivery of ophthalmic drugs into the aqueous humor of the eye. The first application of this delivery vehicle will be for INM-085 as a cannabinoid-based topical therapy targeting reduction of the intraocular pressure associated with glaucoma as well as being designed to serve as a neuro-protectant to the retinal ganglion cells. INM-085 is intended for application as a once-per-day eye drop administered immediately prior to the patient’s bedtime, intending to assist in reducing non-adherence with current glaucoma therapies. Additionally, this novel, proprietary delivery system for ocular drugs may also play an important role in enabling other companies’ proprietary ocular drug candidates or re-invigorating the commercial potential of off-patent products that would benefit from a once-a-day dosing regimen.
About Glaucoma. Glaucoma is a group of eye conditions that damage the optic nerve, which is vital to good vision. This damage is often caused by an abnormally high pressure in your eye. It is the second leading cause of blindness worldwide. It can occur at any age but is more common in older adults. The most common form of glaucoma has no warning signs. The effect is so gradual that you may not notice a change in vision until the condition is at an advanced stage. Vision loss due to glaucoma can’t be recovered.
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