– Enhances financial flexibility through
multiple clinical catalysts on MM-120 and MM-402 product candidates
–
- The Company’s ending 2Q2023 cash and cash
equivalents of $116.9 million and committed credit facility are
expected to fund operations into 2026, if certain milestones are
achieved that unlock additional capital -
– $15.0 million drawn at loan closing –
Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED),
(the “Company” or “MindMed”), a clinical stage biopharmaceutical
company developing novel product candidates to treat brain health
disorders, today announced that it has entered into a senior
secured credit facility with K2 HealthVentures, a
healthcare-focused specialty finance company.
“We are thrilled to announce this agreement with K2
HealthVentures, a premier partner in the life sciences industry
known for strategic investments in promising healthcare companies,”
said Robert Barrow, Chief Executive Officer and Director of
MindMed. “This transaction strengthens our balance sheet and
provides us with additional operational and strategic flexibility
as we enter a very exciting period for MindMed. We have several
upcoming value inflection points such as the topline readout of our
Phase 2b study of MM-120 for the treatment of generalized anxiety
disorder later this year.”
Austin Sherwindt, Managing Director at K2 HealthVentures,
stated: "We are pleased to enter into this financing partnership
with MindMed as it advances its portfolio of product candidates
across an array of disorders of the brain where there are
significant unmet medical needs. 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.”
Upon closing, $15.0 million of the $50.0 million loan facility
was funded. Additional funding amounts of up to an aggregate of
$20.0 million may be drawn over the course of the loan term, in
each case subject to certain milestones being achieved. An
additional tranche of $15.0 million is also available, subject to
the mutual discretion of the Company and lender. Even if such
additional funds become available, the Company is under no
obligation to draw funds in the future. Borrowings under the credit
facility mature on August 1, 2027. Additional details of the credit
facility are filed with the Securities and Exchange Commission on a
Current Report on Form 8-K of the Company filed on August 14,
2023.
About MindMed
MindMed is a clinical stage biopharmaceutical company developing
novel product candidates to treat brain health disorders. Our
mission is to be the global leader in the development and delivery
of treatments that unlock new opportunities to improve patient
outcomes. We are developing a pipeline of innovative product
candidates, with and without acute perceptual effects, targeting
neurotransmitter pathways that play key roles in brain health
disorders.
MindMed trades on NASDAQ under the symbol MNMD and on the
Canadian NEO Exchange under the symbol MMED.
About K2 HealthVentures
K2 HealthVentures is 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 investment team comprises collaborative,
experienced professionals with diverse backgrounds in finance and
operations, as well as deep domain knowledge across various
healthcare sectors. A uniquely flexible, permanent capital
structure enables the firm to provide creative, adaptive financing
solutions and meet the evolving capital needs of its portfolio
companies as they grow. K2 HealthVentures is driven by dual goals
of Profit and Purpose—aiming to fuel the growth of innovative
companies that will ultimately improve the lives of patients and
giving a percentage of investment profits back to underserved areas
in healthcare. www.k2hv.com.
Forward-Looking Statements
Certain statements in this news release related to the Company
constitute “forward-looking information” within the meaning of
applicable securities laws and are prospective in nature.
Forward-looking information is not based on historical facts, but
rather on current expectations and projections about future events
and are therefore subject to risks and uncertainties which could
cause actual results to differ materially from the future results
expressed or implied by the forward-looking statements. These
statements generally can be identified by the use of
forward-looking words such as “will”, “may”, “should”, “could”,
“intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe”,
“potential” or “continue”, or the negative thereof or similar
variations. Undue reliance should not be placed on forward-looking
information, which are inherently uncertain, are based on estimates
and assumptions, and are subject to known and unknown risks and
uncertainties (both general and specific) that contribute to the
possibility that the future events or circumstances contemplated by
the forward-looking statements will not occur. There can be no
assurance that the plans, intentions or expectations upon which
forward-looking statements are based will in fact be realized.
Forward-looking information in this news release includes, but is
not limited to, statements regarding anticipated upcoming
milestones, the potential benefits of the credit facility, trials
and studies, results and timing of clinical trials, the potential
benefits of the Company’s product candidates, timing of enrollment
and the Company’s cash runway funding its operations into 2026.
Forward-looking information is based on the opinions and
estimates of management of the Company at the date the statements
are made, as well as a number of assumptions made by, and
information currently available to, the Company concerning, among
other things, ability of the Company to meet upcoming milestones,
anticipated performance of its product candidates and programs,
business prospects, strategies, regulatory developments, the
development of its product candidates into effective products, the
ability to produce products if approved, the approval by regulators
of any products that are developed, and the non-occurrence of the
risks and uncertainties outlined below or other significant events
occurring outside of the Company’s normal course of business.
Although management of the Company considers these assumptions to
be reasonable based on information currently available to it, they
may prove to be incorrect.
There are numerous risks and uncertainties that could cause
actual results and the Company’s plans and objectives to differ
materially from those expressed in the forward-looking information,
including history of negative cash flows; limited operating
history; incurrence of future losses; availability of additional
capital; changes in market conditions; lack of product revenue;
compliance with laws and regulations; changes in government policy;
difficulty associated with research and development; risks
associated with clinical trials or studies; heightened regulatory
scrutiny; early stage product development; clinical trial risks;
regulatory approval processes; novelty of the psychedelic inspired
medicines industry; as well as those risk factors discussed or
referred to herein and the risks described in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2022,
the Company’s Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30, 2023 under headings such as “Special Note Regarding
Forward-Looking Statements,” and “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” and other filings and furnishings made by the Company
with the securities regulatory authorities in all provinces and
territories of Canada which are available under the Company’s
profile on SEDAR at www.sedar.com and with the U.S. Securities and
Exchange Commission on EDGAR at www.sec.gov. Except as required by
law, the Company undertakes no duty or obligation to update any
forward-looking statements contained in this release as a result of
new information, future events, changes in expectations or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230814596096/en/
For Media & Investor Inquiries, please contact:
Maxim Jacobs, CFA Vice President, Investor Relations and
Corporate Communications Mind Medicine (MindMed) Inc. ir@mindmed.co
media@mindmed.co
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