MagicMed Industries Inc said Monday it is planning to raise up to C$1.5 million to fund development of its portfolio of psychedelic derivative molecules.
The private company is working with Mackie Research Capital Corporation in the offering, which will consist of up to 6 million shares priced at C$0.25 each.
MagicMed’s Psybrary is a molecular derivatives library designed to be a key platform for the psychedelics industry to develop new patented products.
READ: MagicMed Industries files provisional patent covering psychedelic derivatives
The Psybrary will initially focus on psilocybin, but MagicMed expects to expand its scope to other psychedelics like MDMA, ketamine, Ibogaine, Mescaline, and Ayahuasca on an opportunistic basis. MagicMed’s approach is to partner with pharmaceutical and other companies who can use the Psybrary as a building block to develop new patented products.
Under the term sheet, MagicMed will pay Mackie a cash commission equal to 8% of the aggregate gross proceeds of the offering in addition to a work fee and certain expenses.
A portion of the proceeds will also be used to expand MagicMed’s scientific team, according to a statement, with additional funds earmarked for working capital and general corporate purposes.
The Calgary-based company recently filed a provisional patent application with the US Patent and Trademark Office (USPTO) related to the composition of matter, drug formation and the process of preparation for novel psilocybin derivatives, the first in a series of applications that together are designed to protect the Psybrary.
The offering is expected to close by August 14.