Cybin Secures $175 Million in Direct Offering to Advance Mental Health Treatment Pipeline
TL;DR
Cybin's $175M funding round provides capital advantage to accelerate development of breakthrough mental health treatments ahead of competitors.
Cybin issued 22.3M shares at $6.51 each with attached warrants exercisable at $8.14 under specific conditions to raise $175M for clinical trials.
This funding advances Cybin's mission to revolutionize mental healthcare by developing effective treatments for major depressive disorder and anxiety disorders.
Cybin's novel deuterated psilocin analog received FDA Breakthrough Therapy Designation and is now in Phase 3 trials for depression treatment.
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Cybin Inc. has announced a registered direct offering that will provide the company with approximately $175 million in gross proceeds to advance its pipeline of novel mental health treatments. The offering includes 22,277,750 common shares and pre-funded common share purchase warrants priced at $6.51 per share or pre-funded warrant, with each accompanied by 0.35 of one common share purchase warrant exercisable at $8.14 per share. The warrant exercise period extends until the earlier of June 30, 2027, 30 days after topline data is released for the APPROACH trial of CYB003 in major depressive disorder, or 30 days after an acceleration notice if the NYSE American closing price equals or exceeds $19.53 for five consecutive trading days.
The financing attracted participation from both new and existing institutional investors, including Venrock Healthcare Capital Partners, OrbiMed, Point72, Deep Track Capital, Acorn Bioventures, Spruce Street Capital, Squadron Capital Management, Adage Capital Partners LP, Boxer Capital Management, ADAR1 Capital Management, Stonepine Capital Management, Pivotal Bioventure Partners and Ally Bridge Group. This substantial capital infusion comes at a critical time for Cybin, which is positioned as a late-stage breakthrough neuropsychiatry company committed to revolutionizing mental healthcare. The company is developing new and innovative next-generation treatment options to address the large unmet need for people suffering from mental health conditions.
The funding will primarily support the continued development of Cybin's lead programs, including CYB003, a proprietary deuterated psilocin analog currently in Phase 3 studies for the adjunctive treatment of major depressive disorder. CYB003 has received Breakthrough Therapy Designation from the U.S. Food and Drug Administration, recognizing its potential to demonstrate substantial improvement over existing therapies. The company is also advancing CYB004, a proprietary deuterated N, N-dimethyltryptamine molecule in a Phase 2 study for generalized anxiety disorder, and maintains a research pipeline of investigational, 5-HT-receptor focused compounds.
With promising class-leading data, Cybin aims to change the mental health treatment landscape through the introduction of novel drugs that provide effective and durable results for patients. Founded in 2019, Cybin has established operations across Canada, the United States, the United Kingdom and Ireland, positioning the company to leverage international expertise in neuropsychiatry research and development. The successful completion of this $175 million offering represents one of the larger financings in the neuropsychiatry sector and underscores investor confidence in Cybin's approach to addressing mental health challenges through innovative pharmaceutical interventions. Additional information about the company is available in their newsroom.
Curated from InvestorBrandNetwork (IBN)
