The psychedelics industry is steadily gaining momentum, with Toronto-based Cybin Corp recently emerging as a prominent player. On October 19th, the company announced that it had raised CAD$45 million in a private placement, rendering it the largest capital raise in the Canadian psychedelic industry to date.
In June, the company agreed to amalgamate with Clarmin Explorations Inc to carry out a reverse takeover and raise up to CAD$21 million. The round was oversubscribed following the sale of 60 million subscription receipts priced at CAD$0.75 each, resulting in the historic CAD$45 million raise (see psychedelic company private placement data here). The oversubscribed round will now provide funding for the company’s upcoming clinical trials, and accelerate research into novel molecules.
The company has declared intentions to go public in the fall. If the reverse takeover goes according to plan, Clarmin and Cybin will delist Clarmin’s shares from the TSX Venture Exchange and apply to the NEO exchange. Cybin has reported that certain critical elements of their RTO have already been approved, bringing them closer to the NEO listing.
Cybin had previously raised CAD$3.5m in its seed round and CAD$6.8m in a Series A financing round that closed in April 2020. The significance of Cybin’s most recent funding raise can perhaps be best contextualized when compared to competitors’ efforts. Prominent BC-based life sciences company Champignon Brands’ largest raise was $15 million. When industry heavy-hitter MindMed went public in March 2020, it raised $24 million in its pre-IPO financing round.
Industry Veteran Doug Drysdale as Cybin CEO
Cybin’s oversubscribed round signals investors’ confidence in the Company, and its leadership. CEO Doug Drysdale is an industry veteran boasting more than 30 years of company-building experience in the pharmaceutical space.
Drysdale brings expertise in raising both public and private capital, and building and sustaining businesses. His success is global: he has completed numerous acquisitions across three continents. Drysdale was also recognized by Ernst and Young as an Entrepreneur of the Year in 2012.
Drysdale’s leadership experience and familiarity of the space will likely be invaluable in developing strategic alliances and boosting Cybin’s presence and profitability internationally.
Moreover, Drysdale has indicated that both mental illness and addiction hold personal significance, and he is strongly motivated by the novel therapeutic potential of psychedelic therapies.
The management team behind Drysdale also have impressive credentials, with members who have collectively run multiple clinical trials and helped facilitate over $1 billion in pharmaceutical sales.
What is Cybin Corp?
Cybin is a life sciences company. The company is focused on advancing psychedelic therapies and non-psychedelic products to target specific psychiatric and neurological conditions.
Cybin’s business model is two-pronged, divided into its subsidiaries, Serenity Life Sciences and Nature’s Journey Inc. Serenity Life Sciences maintains a focus on psilocybin medication research and development, while Nature’s Journey Inc. innovates proprietary products and services to boost mental health and wellbeing.
Cybin’s Innovations, Research, and Partnerships
As a research-focused company, Cybin has also strategically partnered with the Toronto Centre for Psychedelic Science. This alliance is orientated towards furthering psilocybin research with clinical studies to verify the safety and efficacy of psilocybin. The partnership will likely contribute to Cybin’s IP portfolio, an important consideration for companies in this space.
Cybin is already differentiating itself from other companies in the psychedelics space with innovative research and delivery systems. The company is poised to become one of the first companies within the sector to launch a psilocybin for major depressive disorder study, with Phase 2 clinical trials in the pipeline for 2021.
Another significant component of Cybin’s innovative focus is its commitment to developing cutting-edge delivery methods that achieve therapeutic effects at low doses. The company has entered into a feasibility agreement with IntelGenx Corp, a pharmaceutical drug delivery manufacturer. The two companies have agreed to develop an orally-dissolving sublingual film that delivers pharmaceutical-grade psilocybin, pending necessary regulatory approvals.
This technology intends to offer an edge over current oral delivery methods such as capsules, which have variable bioavailability. An orally-dissolving film placed under the tongue bypasses the liver, requiring a significantly lower dose than a capsule.
Moreover, a sublingual film will likely offer a more predictable, faster, and safer experience for the consumer. For individuals with intense anxiety, fast-acting symptom relief and reliable dosing could be a game-changer.
Prospects for Short and Long-term Investors
Psychedelics capital markets are – in the longer term – likely to be favored by companies with staying power, thanks to high barriers to entry that filter out weaker players. The blossoming psychedelics sector represents a lucrative proposition for investors. The incipient industry is experiencing a surge in investor demand – and with a limited number of companies trading, this demand is channeled into the few stocks available.
Cybin Corp is well-positioned to benefit investors with a view towards both long and short-term gains. Serenity Life Sciences looks set to deliver revenue over a longer horizon, through the investigation of psychedelic therapies and the development of distinct drug delivery methods.
Find out more about Cybin Corp, including the latest news from the Company, by visiting their Psilocybin Alpha Company Profile.
This message is not a recommendation to buy, sell, or hold securities. Psilocybin Alpha is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. Psilocybin Alpha is not responsible for the verification of claims made by issuers. Psilocybin Alpha has been compensated by Cybin Corp for marketing services, for the duration of three months. This communication is based on information generally available to the public, and does not contain any material, non-public information.