Numinus Wellness Closes $6 Million Dollar Bought Deal

The TDR Three Key Takeaways:

1. Capital Raise: Numinus Wellness Inc. raised $6 million through a public offering to support its psychedelic-assisted therapy projects.
2. Strategic Advising: Dr. Rick Doblin’s involvement as an adviser enhances Numinus’s credibility in the field of mental health care.
3. Insider Confidence: Company insiders’ participation in the offering signals strong belief in Numinus’s stability and growth potential.

Numinus Wellness (TSX: NUMI), a company specializing in mental health care with a focus on psychedelic-assisted therapies, announced the successful closing of a “bought deal” public offering, raising $6 million. This transaction involved the sale of 50,000,000 units at a price of $0.12 each, which is the current price of the stock while writing this article. These units include a common share and a warrant, with the latter allowing the purchase of an additional common share at $0.18 within a 24-month period following the offering’s close.

The company, based in Vancouver, BC, emphasized the significance of this financial step in supporting its ongoing and future projects, especially in the wake of the United States Food and Drug Administration’s acceptance of a new drug application for MDMA. This funding is expected to bolster Numinus’ efforts in advancing research on new drugs and treatments, as well as in enhancing its training platform for practitioners in psychedelic-assisted therapy. The involvement of Dr. Rick Doblin, the founder of MAPS, as an unpaid, non-exclusive strategic adviser, is a big win for the company’s credibility. MAPS and Integrated V.C. did not participate in Numinus’ $6,000,000 bought deal, as previously announced.

The offering was managed through an underwriting agreement with Eight Capital, Stifel Nicolaus Canada Inc., and Haywood Securities Inc., serving as co-lead underwriters. An over-allotment option was included, potentially increasing the proceeds by up to $900,000 if fully exercised. This transaction is part of a broader strategy to secure the necessary capital for operational and corporate needs, aiming to expand access to innovative mental health treatments.

Furthermore, the transaction involved participation from certain directors and officers of Numinus, which was designated as a “related party transaction.” This designation did not hinder the process, as Numinus was able to secure exemptions from standard procedural requirements, justifying this by aligning with the company’s market capitalization criteria and the immediate need for capital for strategic business objectives. The fact that insiders participated in the offering is a noteworthy indicator of their confidence in the company. Insider investments are particularly telling; when company insiders, such as executives and directors, choose to invest in their own company’s stock, it reflects their intimate knowledge of the company’s operational strengths, financial stability, and future growth potential. This insider buying acts as a powerful signal to the market, suggesting a strong belief in the company’s direction and its potential for future success.

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