MindBio Therapeutics Corp., (Frankfurt : WF6) CSE : MBIO), announced a financing package on Friday that included a debt settlement and a large private placement to strengthen the company’s cash position.
According to a press release, the company intends to raise $170,000 through a private placement non-brokered of 15,45 million shares at $0.011 each. MindBio plans to repay $1.76m of outstanding debts by issuing 160 million common shares for the same price.
Vancouver-based company specializes in the microdosing of psychedelic drugs for mental conditions. The company’s leading candidate, MB22001 is described as a proprietary titratable Lysergic Acid Diethylamide(LSD) for micro-dosing at home.
MindBio announced that it had completed Phase 1 trials with 80 healthy volunteers and Phase 2a clinical trial with patients suffering from major depression disorder. Both studies showed “positive results”. The company is currently conducting two Phase 2B trials – one in cancer patients experiencing existential distress and another in patients with MDD. The company also got approval to conduct multiple Phase 1 / Phase 2B studies focusing on women’s healthcare.
According to the Canadian Securities Exchange, it is anticipated that the private placement will close on April 18th. MindBio could pay finder’s fees up to 8% on gross proceeds. These fees can be paid in cash or by issuing additional shares.
It was noted by the company that debt settlement agreements concern “certain unsecure loans and payables which are due and owing.” The debt settlement may involve insiders.
The company stated that it will rely on exemptions for formal valuations and approvals by minority shareholders because “no Securities of the Company have been listed on specific markets, and the Fair Market Value of the Debt being settled by the interested parties is not more than 25% of Company’s capitalization”.