Benzinga | Feb 5, 2021 12:15PM EST

InMed Pharmaceuticals Stock Drops After It Presses Capital Raise Button

* InMed Pharmaceuticals Inc (NASDAQ: INM) has entered into definitive agreements with certain institutional investors to raise approximately $4.5 million at $4.25 per unit in a private placement.

* Each unit consists of one common share and 0.66 of a warrant to purchase one common share. Each 5 1/2 year warrant has an exercise price of $4.85 per share.

* Net proceeds of around $4 million will be for working capital purposes.

* The offering is expected to close by February 12. Roth Capital Partners acted as an exclusive placement agent for the transaction.

* In November last year, the Company concluded $8 million in equity funding, primarily to fund preclinical and clinical development of its cannabinoid drug candidates INM-755 (dermatology) and INM-088 (ocular diseases), advancing its IntegraSyn manufacturing platform, and for working capital purposes.

* InMed's top-line results from its INM-755 Phase 1 trial indicated that INM-755 cream was safe and well-tolerated on induced open epidermal wounds but caused no delay in wound healing.

* Additionally, InMed collaborated with BayMedica for utilizing the IntegraSyn platform, wherein InMed will undertake a preclinical investigation of numerous therapeutic compounds selected from BayMedica's library of proprietary cannabinoid analogs. InMed will also explore the therapeutic potential of specific analog compounds in selected disease models in the field of neuroprotection as compared to naturally occurring cannabinoids.

* Price Action: INM tanked 7.5% at $4.43 during market hours at last checked Friday.