InMed Pharmaceuticals Inc (INM)

[lesgetrich]

The prospectus is simply an announcement and required regulatory report that they plan to raise another $15 million by selling securities over the next two years. It is very vague on what kind of securities (it could simply be non-convertible notes or non convertible preferred shares). We won't know the details until and unless they actually do a sale.

InMed's first drug (and associated revenues) won't be available until 2020 at the earliest. What they have in their bank account won't last that long. In the meantime they will need to conduct clinical trials, do research and maintain operations. The prospectus allows them to sell securities at times when the pps becomes more favorable (e.g. when it spikes on good news) without damping excitement by announcing an unanticipated share issue. It also gives them an opportunity to expand research into other diseases and drug candidates besides the two that have already been announced.

There are a few interesting revelations in the prospectus...

InMed has been approached by another company with an alternative in vitro production approach, but InMed has elected to pursue its own proprietary in vivo approach. On June 1, 2016, InMed filed a provisional patent application (USPTO No. 62/344,248) covering its inventions in the in vivo enzymatic biosynthesis of cannabinoids.

InMed is developing cannabinoid-based therapies and drugs to treat a multitude of illnesses and has conducted preliminary and/or advanced preclinical research in the following areas: dermatology (INM-750), ocular disease (INM-085), pain and inflammation (INM-400 Series), pulmonary disease (INM-300 Series), neurodegenerative disease (INM-100 Series) and oncology (INM-200 Series).

Patent Filings

In the Company’s annual information form dated March 24, 2017, the Company disclosed that on February 9, 2017 the Company filed an application with the United States Patent and Trademark Office, or the USPTO, as a Patent Cooperation Treaty, or PCT, patent application, Serial No. PCT/US2017/017184 titled, “A CannabinoidBased Topical Therapy for Epidermolysis Bullosa Simplex”. On May 4, 2017, the Company filed a request to withdraw this application and filed a new application with the USPTO, as a PCT patent application, titled “A Cannabinoid-Based Topical Therapy for Diseases and Conditions Associated with Intermediate Filament Dysfunction”. This new PCT patent application covers EB as well as other disease conditions that have an underlying common association with intermediate filament dysfunction, whereas the previous PCT patent application only covered EB.

Is the company looking at an acquisition?

Subscription Receipts may be offered separately or together with other Securities, as the case may be.

The Subscription Receipts may be issued under a subscription receipt agreement. A Subscription Receipt is a security of the Company that will entitle the holder to receive one or more Securities of the Company, upon the completion of a transaction, typically an acquisition by the Company of the assets or securities of another entity. After the offering of Subscription Receipts, the subscription proceeds for the Subscription Receipts are held in escrow by the designated escrow agent, pending the completion of the transaction. Holders of Subscription Receipts will not have any rights of shareholders of the Company. Holders of Subscription Receipts are only entitled to receive the Securities underlying the Subscription Receipts upon the surrender of their Subscription Receipts to the escrow agent or to a return of the subscription price for the Subscription Receipts together with any payments in lieu of interest or other income earned on the subscription proceeds.

The applicable Prospectus Supplement will include details of any subscription receipt agreement covering the Subscription Receipts being offered. A copy of any subscription receipt agreement relating to an offering of Subscription Receipts will be filed by the Company with the relevant securities regulatory authorities in Canada after the Company has entered into it.

Debt Securities may be offered separately or in combination with one or more other Securities. The Company may, from time to time, issue debt securities and incur additional indebtedness other than through the issuance of Debt Securities pursuant to this Prospectus.

They included a list of all of their previous security sales. Looks like most are currently underwater...



Shareholders need to keep in mind that Inmed is a fantastic long term investment but it may take several years before it realizes it's full potential.