MindMed Closes on Upsized Financing of $13.2m

TORONTO, May 26, 2020 /CNW/ — Mind Medicine (MindMed) Inc. (NEO: MMED, OTCQB: MMEDF) (“MindMed” or the “Company”) is pleased to announce that it has closed its previously announced bought deal short form prospectus offering, including the exercise in full of the underwriter’s over-allotment option (the “Offering”). In connection with the Offering, the Company issued 24,953,850 units of the Company (the “Units”) at a price per Unit of $0.53 CAD (the “Issue Price”) for gross proceeds of $13,225,540.50. Eight Capital acted as sole bookrunner and underwriter in the Offering.

Each Unit comprises one subordinate voting share of the Company (a “Subordinate Voting Share”) and one-half of one Subordinate Voting Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Subordinate Voting Share at an exercise price of $0.79 until May 26, 2022. If, prior to the expiry of the Warrants, the daily volume weighted average price of the Subordinate Voting Shares on the facilities of the Neo Exchange Inc. is equal to or greater than $1.13 for any 10 consecutive trading days, the Company may, upon providing written notice to the holders of Warrants, accelerate the expiry date of the Warrants to the date that is 30 days following the date of such written notice. The Warrants will be listed for trading on the facilities of the NEO Exchange under the symbol “MMED.WT”, subject to the final approval of the NEO Exchange.

The Company intends to use a portion of the net proceeds of the Offering to fund its collaboration with University Hospital Basel’s Liechti Lab and the remainder for general corporate purposes. With this new funding, MindMed plans to expand research & development programs and clinical trials underway at Liechti Lab to create next-generation psychedelic inspired medicines and therapies.

MindMed Director & Co-CEO, JR Rahn, said “With this financing, we aim to greatly expand MindMed’s portfolio researching next-gen psychedelic inspired medicines in collaboration with the University Hospital Basel’s Liechti Lab. We are already extremely encouraged by the potential of novel research & development being generated by Dr. Liechti and his team.”

Subscriptions by an insider of the Company, Director & Co-CEO JR Rahn, accounted for approximately $50,000 of the gross proceeds of the Offering. Participation by insiders in the Offering is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) by virtue of the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.

About MindMed

Mind Medicine (MindMed) Inc. is a neuro-pharmaceutical company that discovers, develops and deploys psychedelic inspired medicines to improve health, promote wellness and alleviate suffering. The company’s immediate priority is to address the opioid crisis by developing a non-hallucinogenic version of the psychedelic ibogaine. In addition, the company has established a microdosing division to conduct clinical trials of LSD microdosing for adult ADHD. The MindMed executive team brings extensive biopharmaceutical industry experience to this ground-breaking approach to the development of next-generation psychedelic medicines. For more information: www.mindmed.co. MindMed trades on the NEO Exchange under the symbol MMED. MindMed can also be traded in the US under the symbol OTCQB: MMEDF and in Germany under the symbol DE:BGHM.

Forward-Looking Statements

Certain statements in this news release related to the Company are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the intended use of proceeds of the Offering, the listing of the Warrants on the NEO Exchange and the Company’s ability to develop next generation psychedelic therapies. There are numerous risks and uncertainties that could cause actual results and MindMed’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.

For further information:
Media Contact: Anna Walsh, E: mindmedpr@pacepublicrelations.com, P: 212-254-4730; or Investor Relations:
invest@mindmed.co, https://www.mindmed.co
SOURCE Mind Medicine (MindMed) Inc.
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