MindMed Inks $50M Credit Facility Deal With K2 HealthVentures For An Additional Operational Year

Clinical-stage psychedelics biotech MindMed MNMD has secured a new financing source by entering into a $50 million senior secured credit facility with K2 HealthVentures, an alternative investment firm focused on providing “flexible, long-term financing solutions to innovative private and public companies in the life sciences and healthcare industries.” 

The news comes just days after MindMed shared its quarterly financial results when the management team stated that the available cash as of June 30 would be “sufficient” to fund operations until the first half of 2025.

Upon the new agreement’s closing, $15 million of the total loan facility was funded. Additional funding amounts of up to an aggregate of $20 million could be drawn subject to the achievement of milestones and an additional tranche of $15 million is also available and subject to mutual discretion of MindMed and K2. 

While not obliged to draw additional funds, MindMed expects the new financing source together with its latest cash position will fund operations into 2026. Borrowings under the credit facility would mature on August 1, 2027. 

MindMed’s CEO Robert Barrow says the transaction both strengthens the company’s balance sheet and provides additional operational and strategic flexibility while it enters a “very exciting” clinical period for both MM-120 (LSD) and MM-402 (R-MDMA.) 

Barrow highlighted last year’s topline results readout of Phase 2b LSD study for Generalized Anxiety Disorder (GAD) as one of the company’s past value inflection points, and assures there’s more coming up. 

On behalf of K2 HealthVentures, managing director Austin Sherwindt says the team is pleased to enter into the financing partnership. In his words, “We believe in the long-term potential of MindMed’s pipeline and look forward to working with the Company to reach its critical development milestones.”

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Photo: Benzinga edit with photo by Pexels.