Mydecine Innovations Group Inc (OTC:MYCOF, NEO:MYCO) has announced an agreement with an investor to complete a non-brokered private placement of a convertible secured subordinated debenture in the principal amount of C$5.5 million.
The company said the financing, which is expected to close on December 10, 2021, will allow it to continue to make progress on its research and development (R&D), clinical trials and technology initiatives.
“This financing will give Mydecine the runway needed to continue meeting important milestones like launching our smoking cessation study in partnership with Johns Hopkins University and PTSD (Post Traumatic Stress Disorder) studies with various global military focused organizations, furthering our drug development initiatives and growing paid subscribers on our telehealth platform Mindleap,” Mydecine Innovations Group CEO Josh Bartch said in a statement.
READ: Mydecine announces 3Q results, says it's preparing to supply MYCO-001 for Johns Hopkins smoking cessation study
“I’m proud of our accomplishments to date and look forward to kicking off multiple clinical trials in early 2022,” Bartch added.
The debenture bears an interest rate of 10% per year payable annually in arrears and matures three years from the date of issue. It is convertible at any time at the option of the holder into common shares of the company at a conversion price of $0.17 per share.
As part of the financing, the investor was also issued warrants to acquire up to 32,352,941 company common shares, at a price of $0.17 per share, at any time up to 36 months following the closing of the financing.
As well, Mydecine said it has been in communication with the US Food and Drug Administration (FDA) and plans to hold a Pre-IND meeting in February for its seamless Phase 2/3 smoking cessation clinical trial assessing MYCO-001, 99% pure psilocybin, to treat nicotine dependence.
The study flagship site will be at Johns Hopkins University with research led by Dr Matthew Johnson.
The company noted that Dr Johnson recently reported interim results from his current smoking cessation study, which utilized a single macro-dose of psilocybin. At 12 months, 59% of the patients who received the psilocybin treatment remained abstinent compared with 28% of those who received the nicotine patch.
Mydecine said a third study that will assess MYCO-001 as a drug candidate for the treatment of post-traumatic stress disorder (PTSD) is planned for next year.
The company also announced that it continues to execute upon its plan of bringing new chemical entities (NCEs) through preclinical studies, as preclinical data on numerous sets of Mydecine’s novel compounds are showing significant improvements compared to the first generation of drugs.
It added that it has seen significant progress and data collection around other lead candidates and has filed two full patent applications in the past 60 days.
As well, Mydecine said its wholly-owned subsidiary, Mindleap Health Inc, launched its app platform Mindleap 2.0 this summer and it continues to steadily increase in downloads and subscribers.
Mindleap is an innovative virtual health and wellness platform that focuses on the conscious and trustworthy adoption of psychedelics in mental health in the broader space of inner wellness and healing.
The company noted that Mindleap continues to build strategic partnerships, produce new media content, and further enhance its technology in order to create a leading platform for the psychedelic therapy and mental health space.
Mydecine Innovations Group is dedicated to developing and commercializing innovative solutions for treating mental health problems and enhancing vitality.
Contact Sean at sean@proactiveinvestors.com