InMed Pharmaceuticals Inc. (TSX:IN) is pleased to announce that it has entered into an amended letter of engagement with Eight Capital, under which Eight Capital has now agreed to purchase, as underwriter, 14,444,560 units of the Company, on a “bought deal” basis pursuant to the filing of a shelf prospectus supplement, subject to all required regulatory approvals, at a price per Unit of $0.90, for total gross proceeds of $13,000,104.
[Editors Note: a bought deal ensures that the full amount will be confirmed. From Investopedia: A bought deal is a securities offering in which an investment bank commits to buy the entire offering from the client company. A bought deal eliminates the issuing company’s financing risk, ensuring that it will raise the intended amount. ]
Each Unit shall consist of one common share of the Company and one common share purchase warrant. Each Warrant shall entitle the holder thereof to acquire one Share at a price of $1.25 for a period of 24 months following the Closing Date.
The Company has agreed to grant Eight Capital an over-allotment option to purchase up to an additional 2,166,680 Units at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $1,950,012 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $14,950,116.
The Company intends to use the net proceeds of the Offering to support the continued research and development of INM-750 for the treatment of Epidermolysis Bullosa, to further develop the Company’s other research and development programs including its biosynthesis assets, for general and administrative expenses of the Company, and to fund working capital.
The Units will be offered by way of a shelf prospectus supplement to be filed in the provinces of British Columbia, Alberta and Ontario, and such other provinces of Canada, except Quebec, to be agreed upon by InMed and Eight Capital pursuant to National Instrument 44-101 - Short Form Prospectus Distributions.
The closing date of the Offering is scheduled to be on or about June 21, 2018 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.
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.