Cybin Raises C$45 Million: The Largest Go Public Capital Raise in the Canadian Psychedelic Sector
October 22nd, 2020
Exclusive, Psychedelics, Top Story
The COMPASS Pathways Inc. (NASDAQ: CMPS) initial public offering on the NASDAQ has reinvigorated the psychedelics industry over the past couple of weeks. While COMPASS Pathways Inc. is certainly one of the largest companies in the space, there are a handful of other companies, with experienced management teams, that have raised a significant amount of capital.
Let’s take a look at Cybin’s successful capital raises thus far and why investors may want to take a closer look as it gears up to go public in the near-term.
Successful Capital Raises
Cybin raised a total of C$10.3 million through a C$3.5 million seed round and a C$6.8 million Series A round that closed in April. In June, the company entered into an amalgamation agreement with Clarmin Explorations Inc. (TSX-V: CX) to conduct a reverse takeover, set to raise C$14 million to C$21 million and ultimately list on a Canadian stock exchange.
On October 19, Cybin announced that its initial raise of between C$14 million and C$21 million was oversubscribed to C$45 million, making it the largest capital raise in the psychedelic industry in Canada to date. The private placement consisted of 60 million subscription receipts at C$0.75 a piece and was led by Stifel GMP and Eight Capital.
“The strong interest we received from distinguished healthcare investors enabled us to exceed our original capital-raising goals,” said CEO Doug Drysdale. “The potential for psychedelic therapies to treat mental illness and addiction disorders has never been more significant. With this investment, we will continue to advance our robust pipeline of psychedelic-based products through clinical development.”
The success in raising capital comes from both a strong management team and a unique business model that’s focused on both near and long-term potential. CEO Doug Drysdale brings decades of company-building experience in the pharmaceutical space where he raised $4 billion in private and public capital and completed 15 acquisitions across three continents.
Learn more about Cybin CEO Doug Drysdale here:
Near & Long-term Potential
Cybin seeks to be one of the first companies to bring to market a psilocybin product targeting Major Depressive Disorder (MDD); Phase 2A and Phase 2B clinical trials scheduled to begin in early 2021. To that end, the company has entered into an agreement with IntelGenx Corp. (TSX-V: IGX), licensing its sublingual film technology to deliver enhanced bioavailability of the active drug(s) in development.
A life sciences company, Cybin is advancing both psychedelic pharmaceutical therapies as well as non-psychedelic nutraceutical products for a number of psychiatric and neurological conditions. The company is committed to leading with innovation; developing technologies and delivery systems to achieve the desired effects of psychedelics at low dosage levels. Cybin will be conducting clinical trials to assess the safety and efficacy of all these technologies.
Cybin raised a total of approximately C$55M million in private funding and plans to go public through a reverse merger on a Canadian stock exchange. The company is one of the best-funded companies in the psychedelic industry with both near and long-term revenue opportunities, making it a compelling addition to investor portfolios.
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