TORONTO - Cybin Inc. (NYSE American:CYBN) (Cboe CA:CYBN), a clinical-stage biopharmaceutical company, has announced a private placement of common shares expected to raise $150 million. The offering is priced at $0.43 per share, a 17% premium over the recent average trading price on the NYSE American.
The placement, led by Deep Track Capital, saw participation from a range of institutional investors including RA Capital Management and Avidity Partners. The funds are earmarked for Phase 3 development of CYB003, a psychedelic-based treatment for Major Depressive Disorder (MDD), along with general corporate purposes.
CYB003, if approved by the FDA, could become the first adjunctive psychedelic-based therapy for MDD. The offering, managed by Bloom Burton Securities Inc. as the lead agent, is expected to close around March 19, 2024, pending regulatory and stock exchange approvals.
In the U.S., the shares will be offered privately in accordance with exemptions from registration requirements. Cybin is also committed to facilitating the resale of these shares in the U.S. by filing the necessary registrations or amendments as required by regulatory authorities.
Cybin, headquartered in Canada, has a focus on developing new treatments for mental health conditions through psychedelic-based therapeutics. The company has a pipeline of investigational compounds and is actively engaged in drug discovery and development efforts.
This news is based on a press release statement.
InvestingPro Insights
As Cybin Inc. (NYSE American:CYBN) navigates through the critical stages of developing its psychedelic-based treatment for Major Depressive Disorder, the company's financial health and market performance become increasingly important to investors. With a current market capitalization of $180.94 million, Cybin shows a commitment to innovation in mental health treatments. Despite not paying dividends to shareholders, the company has demonstrated significant market gains with a one-week price total return of 37.76% and a six-month price total return of 33.5%.
InvestingPro Tips for Cybin suggest a mixed financial picture: while the company holds more cash than debt, indicating a strong liquidity position, it is also quickly burning through cash, which could be a concern for long-term sustainability. Notably, Cybin has not been profitable over the last twelve months and analysts do not anticipate it will be profitable this year. The company's net income is expected to drop, and three analysts have revised their earnings downwards for the upcoming period, highlighting the challenges ahead.
Investors interested in a deeper analysis can find additional InvestingPro Tips on Cybin by visiting https://www.investing.com/pro/CYBN. There are a total of 12 tips available, providing a comprehensive view of the company's financial health and market outlook. For those looking to subscribe to InvestingPro for further insights, remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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