TORONTO– Biomind Labs Inc. (NEO: BMND) (OTC: BMNDF) (FSE: 3XI), a leading biotech company focused on developing the next generation of pharmaceuticals to treat patients suffering from neurological and psychiatric disorders by scientifically harnessing the medicinal power of psychedelic molecules, is pleased to announce that the U.S. Food and Drug Administration (“FDA”) has given the Company Investigational New Drug (“IND”) clearance related to the Company’s New Chemical Entity (“NCE”) Triptax™.
“We are extremely excited with the FDA’s clearance of our IND application for our NCE. This is a paramount achievement for Biomind Labs and a historic moment in the field of psychedelic treatments”, said Alejandro Antalich, CEO of Biomind Labs.
“With this IND clearance, we are now in a strong position to rapidly advance our clinical pipeline targeting depression, specifically, treatment-resistant depression. As part of our diversified go-to-market strategy, the NCE Triptax™ opens a new avenue to be considered by traditional pharma companies, since it could be used as an active pharmaceutical ingredient or as a chemical precursor, depending on the selected route of administration and physicochemical characteristics. The high commitment and passion showed by our team and selected partners became key to initiating our Phase I Clinical Trials in the U.S. and to keep working tirelessly on the development of the next generation of pharmaceuticals to provide patients and the psychiatric community with novel and affordable treatments under a comfortable, safe and efficient environment”, concluded Antalich.
The Company also announces that is has entered into a loan facility with its largest shareholder Union Group Ventures Limited (the “Lender”) for the provision by the Lender of a credit facility of up to US$3,000,000 (the “Loan”) to fund working capital requirements of the Company.
Amounts made available under the Credit Facility, plus any applicable interest thereon (each, a “Disbursement”), shall be repaid by the Company on such date that is 12 months after the date of the applicable Disbursement or such earlier date that the Lender may elect (each a “Repayment Date”). The Company may, at its sole discretion, repay each Disbursement or a portion thereof, together with accrued interest thereon, by issuing common shares in the capital of the Company (the “Common Shares”) at a price per share, subject to applicable securities law or the rules and regulations of any applicable stock exchange including the approval of the Neo Exchange Inc. (the “NEO Exchange”), calculated as the greater of : (i) the 15 day volume weighted average trading price of the Common Shares on the NEO Exchange prior to the applicable Repayment Date, less a 20% discount; and (ii) the maximum permitted discounted price under the policies of the NEO Exchange. The Loan is unsecured. No bonus securities will be granted to the Lender for providing the Loan. Amounts advanced under the Loan shall bear interest at 12% per annum.
The Lender is a “control person” of the Company. The Loan is considered a “Related Party Transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied upon the exemptions from the minority shareholder approval and valuation requirements set out in Sections 5.7(1)(a) and 5.5(a), respectively, of MI 61-101 for the purpose of this transaction.
