Cybin Launches Five-Day Units Offering For Up To $64M, Suspends Prior LPC Funding Deal
Portfolio Pulse from Lara Goldstein
Cybin Inc. (NYSE:CYBN), a clinical-stage psychedelics biotech company, has launched a new underwritten offering of 66.66 million units at $0.45 each to institutional shareholders, aiming to raise up to $64 million. The offering includes common shares and warrants exercisable at $0.51. The proceeds will fund Cybin's CYB003 and deuterated DMT programs and for general corporate purposes. Cybin also suspended a previous funding agreement with Lincoln Park Capital Fund (LPC), effective immediately.
November 10, 2023 | 7:58 pm
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Cybin Inc. is raising up to $64M through a unit offering to institutional investors, which could dilute current shareholders but also provide capital for its psychedelic therapeutics programs.
The new unit offering by Cybin Inc. is likely to have a short-term negative impact on the stock price due to potential dilution of existing shares. However, the capital raised will be used to fund the company's ongoing programs, which could have positive long-term effects. The suspension of the LPC funding deal removes a previous source of capital but also indicates confidence in the new funding strategy.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100