Cybin Launches Five-Day Units Offering For Up To $64M, Suspends Prior LPC Funding Deal

Clinical-stage psychedelics biotech Cybin Inc. CYBN has announced a new underwritten offering of 66.66 million units to one of its largest institutional shareholders as well as new institutional investors.

Unit price set at $0.45, an approximate $30 million will be fully funded upon the offering’s closing (gross proceeds), with up to an additional $34 million that could be funded upon full exercise of the warrants.

Pursuant to a prospectus supplement to Cybin’s short-form base shelf prospectus of August 17, each unit will consist of one capital common share and one common share purchase warrant. The latter will be exercisable to acquire one of the former for $0.51 for a period starting 6 months after issuance and until 60 months after initial exercisability, “subject to acceleration in certain circumstances.”

With Alliance Global Partners (A.G.P.) acting as the sole book-running manager, the offering is expected to close on or about Nov. 15, 2023, or another alternative date set jointly by A.G.P. and Cybin. 

Completion of the offering will be subject to market and other customary conditions, including approval of the Neo Exchange (now Cboe Canada).

Cybin has stated it will use the new net proceeds for progressing its CYB003 and deuterated DMT programs as well as for general corporate and working capital purposes.

See Also: Cybin Officially Owns Small Pharma: Plans For New 'International Leader' In Psychedelic Therapeutics

LPC Fund Agreement Gets Suspended

Cybin has also announced that, while arranging the new offering, it notified former financing partner Lincoln Park Capital Fund (LPC) of its intention to suspend shares purchases under a May 30 agreement, effective immediately on Nov. 9. 

Under the purchase agreement, Cybin was able to issue common shares for up to $30 million from the treasury to LPC, from time to time and at its own discretion, for a period of up to 36 months. 

Those shares sales, also framed within a prospectus supplement dated August 23, 2023, constituted a total of $465,273 before the suspension of sales. No further common shares would be sold to LPC pursuant to such supplement or the base shelf prospectus.

See Also: Harvard's New Psychedelics Research Program Backed By Former Tesla Director's $16M Donation
Photo: Benzinga edit with photo by Raimundo79 and Blue Planet Studio on Shutterstock.