NeonMind Closes Convertible Debenture Financing
NeonMind Closes Convertible Debenture Financing
Oakville, Ont. – April 8, 2022: NeonMind Biosciences Inc. (CSE: NEON) (OTCQB: NMDBF) (FRA: 6UF)(“NeonMind'' or the “Company”) an integrated drug development and wellness company focused onbringing innovative psychedelic-based treatments to people suffering from obesity and mental healthdisorders, is pleased to announce that on April 8, 2022 it closed its private placement offeringannounced on March 21, 2022 (the “Offering''). Pursuant to the Offering, the Company has issued 394units at a price of $1,000 per unit (the “Units”) for gross proceeds of $394,000. Each Unit consists of oneunsecured convertible debenture in the principal amount of $1,000 (the “Debentures”) and 9,500warrants to purchase common shares of the Company (the “Warrants”). Of the Units issued, 109 Unitswere issued for debt settlement.
The Debentures bear interest at a rate of 10% per annum on an accrual basis from issuance, calculatedand payable semi-annually in arrears on May 31 and November 30 of each year with such paymentcommencing on April 8, 2022, with a redemption date that is 24 months from issuance. The Debentureswill be convertible in full or in part, at the holders’ option, into common shares in the capital of theCompany at a price of $0.075 per common share, at any time prior to their redemption. Each Warrantwill entitle the holder thereof to acquire one common share of the Company at a price of $0.08 pershare for a period of 36 months from the date of issue.
In connection with the closing of the Offering, the Company has
paid Echelon Wealth Partners Inc.(“Echelon”) a cash commission of $14,000, and granted 133,000 warrants (the “Agent Warrants”) toEchelon with each such Agent Warrant entitling the holder to purchase one common share and oneshare purchase warrant (each, an “AW Warrant”) of the Company at a price of $0.075 for a period of 24months from the date of issue. Each AW Warrant is exercisable to purchase one additional commonshare of the company at a price of $0.08 for a period of 36 months from the date of issue of the AgentWarrants.
All the securities issued in connection with the Offering are subject to a statutory hold period lasting four
months and one day following the closing of the Offering. All amounts are in Canadian dollars. The
netproceeds from the Offering will be used for marketing, wages, and general working capital. No relatedparties participated in the Offering.
About NeonMind Biosciences Inc.
NeonMind operates two divisions: (i) a pharmaceutical division engaged in drug development ofpsychedelic compounds with two lead psilocybin-based drug candidates targeting obesity; and (ii) amedical services division focused on launching specialty mental health clinics that integrate psychedelictherapeutics into traditional psychotherapy settings.
In its pharmaceutical division, NeonMind has two distinct psilocybin drug development programstargeting obesity. NeonMind's lead candidate, NEO-001, employs psilocybin as an agonist at theserotonin 5- HT2A receptor, which is involved in the hallucinogenic effect of psychedelics. The Company'ssecond drug candidate, NEO-002, employs low-dose psilocybin as an agonist at the 5-HT2C receptor,which controls appetite.
NeonMind and its strategic partners are building NeonMind-branded specialty mental health clinics inCanada that incorporate evidence-backed innovative treatments to address a variety of mental healthneeds. For more information on NeonMind, go to www.NeonMindBiosciences.com.
Rob Tessarolo, President & Chief Executive Officer, NeonMind Biosciences [email protected]: 416-750-3101
The Canadian Securities Exchange has not reviewed, approved nor disapproved the contents of this newsrelease.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information. Thesestatements relate to future events or NeonMind's future performance. The use of any of the words"could", "expect", "believe", "will", "projected","estimated" and similar expressions and statementsrelating to matters that are not historical facts are intended to identify forward-looking information andare based on NeonMind's current belief or assumptions as to the outcome and timing of such futureevents. Actual future results may differ materially. In particular, NeonMind's drug development plans, itsability to retain key personnel, and its expectation as to the development of its intellectual property andother steps in its preclinical and clinical drug development constitute forward-looking information. Actualresults and developments may differ materially from those contemplated by forward-looking
information. Readers are cautioned not to place undue reliance on forward-looking information. Thestatements made in this press release are made as of the date hereof. NeonMind disclaims any intentionor obligation to publicly update or revise any forward-looking information, whether as a result of newinformation, future events or otherwise, except as may be expressly required by applicable securitieslaws.