VANCOUVER, May 23, 2017 /CNW/ - InMed Pharmaceuticals, Inc. ("InMed" or the "Company") (CSE: IN; OTCQB: IMLFF), a biopharmaceutical company specializing in the research and development of novel, cannabinoid-based drug therapies, is pleased to announce that, in connection with its proposed public offering announced on April 21, 2017, it has entered into an underwriting agreement (the "Underwriting Agreement") with a syndicate of underwriters led by Canaccord Genuity Corp. and including Eight Capital along with Roth Capital Partners, LLC serving as placement agent for sales of Units in the United States (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on an underwritten basis, 11,120,000 Units of the Company (the "Units") at a price of $0.45 per Unit (the "Offering Price"), for aggregate gross proceeds of $5,000,400 (the "Offering"). Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will have an exercise price of $0.65 per common share and will be exercisable for a period of 24 months following the closing date. The Warrants will only be exercisable on a net cashless basis on the five-day volume-weighted average trading price of the common shares of the Company on the Canadian Securities Exchange ending on the date immediately preceding the date of exercise.
In addition, the Company has granted the Underwriters an option (the "Over-Allotment Option"), to purchase up to 1,668,000 additional Units at the Offering Price for a period of up to 30 days after the closing date of the Offering. In the event that the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering to the Company will be $5,754,600.
InMed intends to use the net proceeds from the Offering for the following purposes: to support the continued research and development of INM-750 for the treatment of Epidermolysis Bullosa; to further develop the Company's other research and development programs including its biosynthesis assets; for general and administrative expenses of the Company; and to fund working capital.
Closing of the Offering is expected to occur on or about May 30, 2017, subject to the receipt of all necessary regulatory approvals and other customary closing conditions for transactions of this nature.
InMed intends to file a final short form prospectus for the Offering (the "Final Prospectus") on or about May 24, 2017 in the provinces of British Columbia, Alberta and Ontario. A copy of the Final Prospectus and the Underwriting Agreement will be available for review under the Company's profile on SEDAR at www.sedar.com.
This news release shall not constitute an offer to sell or a solicitation of any offer to buy any of the securities being offered nor shall there be any sale of any of the securities being offered in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and such securities may not be offered or sold within the United States absent registration under the U.S. Securities Act or an applicable exemption from the registration requirements thereunder.
