Cybin Announces Firm Commitment Underwritten Offering

Introduction

In a recent development, Cybin shares experienced a 13% decrease, currently valued at 44 cents. This decline in share price follows the company’s announcement of a firm commitment underwritten offering, which entails the issuance of 66.7 million units to both existing and new institutional investors. The offering has been priced at 45 cents per unit, generating $30 million in proceeds.

Stock Performance

Despite the recent dip, it is worth noting that Cybin shares reached their highest point in the past year on October 31, trading at 74 cents. Over the course of the past 12 months, the stock has demonstrated a modest 1% increase.

Offering Details

Each unit in this underwritten offering will consist of one share and one purchase warrant. The purchase warrant enables the holder to acquire one share at a price of 51 cents per share. The exercise period for these warrants will begin six months after issuance and continue for a duration of 60 months.

Anticipated Timeline

The underwritten offering is expected to conclude on or around Wednesday, providing interested parties with a defined timeline for participation.

Utilization of Proceeds

Cybin has outlined its strategic plan for utilizing the funds raised from this offering. The company intends to allocate the proceeds towards advancing the development of its CYB003 and deuterated DMT programs. Additionally, the funds will be utilized for general corporate operations and working capital requirements.