Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED), (the “Company” or “MindMed”), a clinical stage biopharmaceutical company developing novel product candidates to treat brain health disorders, today announced that it has entered into a senior secured credit facility with K2 HealthVentures, a healthcare-focused specialty finance company.
“We are thrilled to announce this agreement with K2 HealthVentures, a premier partner in the life sciences industry known for strategic investments in promising healthcare companies,” said Robert Barrow, Chief Executive Officer and Director of MindMed. “This transaction strengthens our balance sheet and provides us with additional operational and strategic flexibility as we enter a very exciting period for MindMed. We have several upcoming value inflection points such as the topline readout of our Phase 2b study of MM-120 for the treatment of generalized anxiety disorder later this year.”
Austin Sherwindt, Managing Director at K2 HealthVentures, stated: "We are pleased to enter into this financing partnership with MindMed as it advances its portfolio of product candidates across an array of disorders of the brain where there are significant unmet medical needs. We believe in the long-term potential of MindMed’s pipeline and look forward to working with the Company to reach its critical development milestones.”
Upon closing, $15.0 million of the $50.0 million loan facility was funded. Additional funding amounts of up to an aggregate of $20.0 million may be drawn over the course of the loan term, in each case subject to certain milestones being achieved. An additional tranche of $15.0 million is also available, subject to the mutual discretion of the Company and lender. Even if such additional funds become available, the Company is under no obligation to draw funds in the future. Borrowings under the credit facility mature on August 1, 2027. Additional details of the credit facility are filed with the Securities and Exchange Commission on a Current Report on Form 8-K of the Company filed on August 14, 2023.