In a strategic move aimed at securing funds for the advancement of its groundbreaking psychedelic-derived therapeutics, Clearmind Medicine Inc. has announced definitive agreements with institutional investors for a registered direct offering. The biotech company, specializing in the discovery and development of innovative solutions for under-treated health problems, disclosed plans to sell Common Shares and pre-funded warrants, concurrently engaging in a private placement for Common Warrants with the same investors. These financial transactions are expected to generate an aggregate gross sum of approximately $2.4 million for Clearmind Medicine Inc.
The transactions encompass the sale of 1,500,000 Common Units (or Pre-Funded Units), with each unit comprising one Common Share or Pre-Funded Warrant, and a PIPE Common Warrant. The PIPE Common Warrant holds the right to purchase one Common Share at an exercise price of $1.60. The public offering price per Common Unit stands at $1.60, with a slightly adjusted price of $1.5999 for each Pre-Funded Unit, accounting for the Pre-Funded Warrant’s exercise price of $0.0001. The Pre-Funded Warrants are immediately exercisable and can be executed at any time until full exercise. Each Pre-Funded Unit sold decreases the number of Common Units in the offering on a one-for-one basis. The initial exercise price for each PIPE Common Warrant is set at $1.60 per Common Share, and these warrants are exercisable immediately, contingent upon registration, with an expiration period of 60 months from the initial issuance date.
However, the announcement had a significant impact on the stock performance of Clearmind Medicine. The stock experienced a notable decrease, opening Thursday’s session at $1.70, compared to the $2.93 closing on Wednesday’s trading.
At the time of this publication, Clearmind Medicine Inc stock (CMND) has witnessed a decline.
Clearmind Medicine Inc
Current Price: $1.74
Change : -1.19
Change (%): (-40.61%)
Volume: 3.1M
Source: Tomorrow Events Market Data
The securities sale associated with these transactions is not available to Canadians or residents of Canada. The closure of the financial transactions of Clearmind Medicine is anticipated on or around January 16, 2024, contingent upon meeting customary closing conditions. Clearmind Medicine Inc. plans to allocate the net proceeds from these offerings, combined with its existing cash, for general corporate purposes and working capital.
Exclusive Placement Agent duties for the offerings are entrusted to Aegis Capital Corp. Greenberg Traurig, P.A. serves as U.S. counsel to Clearmind Medicine Inc., while Daniel Bloch, Barrister & Solicitor, fulfills the role of Canadian counsel. Counsel to the Placement Agent for the offerings is provided by Kaufman & Canoles, P.C.
The registered direct offering adheres to the guidelines of an effective shelf registration statement (No. 333-275991), previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on December 26, 2023.
