Drysdale Explains $30m Cybin Shares Purchase Agreement

We have the latest TDR Psychedelic Exclusive here, and Doug Drysdale, CEO of Cybin (NYSE: CYBN) is joining Shadd and Benjamin to share some of the latest news. Cybin is a Canada-based biotech company looking to advance research on and commercialize psychedelic compounds for mental health treatment. The biggest topic of conversation today: their common share purchase agreement.

Most investors are keenly aware that it has been challenging for companies in the psychedelics and cannabis industries recently. Drysdale shares a bit about how Cybin has endured the dilution and other events. Their strategy, he says, is a factor in the LPC agreement also announced that day.

Cybin entered into a common share purchase agreement with Chicago-based Lincoln Park Capital Fund LLC. They’re institutional investors that started back in 1999, and Drysdale says that there’s been a bit of a relationship between them and Cybin for a while. In the terms of the agreement, LPC is obligated to purchase up to US$30 million of Cybin’s common shares over a 36-month period at prices that are based on the market price at the time of each sale to LPC.

Drysdale explains what this is going to mean to shareholders. Terms of the agreement involve Cybin having complete discretion over the 3-year timeline as to when the institution investor can purchase the shares, leaving Cybin shareholders in a good position both short term and long term.

In addition, Drysdale provides updates on a number of their clinical trials, including their Phase 1 DMT trial and entering into Phase 3 with a number of them by 2024. If they get to Phase 3, does he see Big Pharma entering in and sponsoring the trials? How is psychedelic commercialization going to work? And what is the ultimate goal of CYB 004?

Here’s what he had to say on the matter.