Clearmind Medicine secures $10 million financing agreement

Clearmind Medicine Inc. (NASDAQ: CMND) announced it entered into securities purchase agreements with institutional investors for up to $10 million in convertible promissory notes. The clinical-stage biotech company focuses on psychedelic-derived therapeutics development.

The company completed an initial closing, issuing $555,556 in notes for $500,000. Following Securities and Exchange Commission registration statement effectiveness, Clearmind will issue additional notes totaling $1,944,444 for $1,750,000.

Beginning three months after the second closing, the company may request quarterly purchases of up to $2,500,000 in notes, totaling $7,500,000 for $6,750,000. Notes are issued at 90% of principal amount and carry 4% annual interest, increasing to 14% upon default.

Each note matures in ten equal monthly installments starting 18 months after issuance, with conversion options into common shares at variable prices not below $0.20. If daily trading volume reaches 150% of outstanding shares, additional purchase conditions apply.

Aegis Capital Corp. served as financial advisor for the transaction. The company plans to use proceeds for working capital, general corporate purposes, and potential acquisitions to explore strategic opportunities.

Clearmind operates as a clinical-stage pharmaceutical company developing psychedelic-based compounds for health problems including alcohol use disorder. The company holds 19 patent families with 31 granted patents and trades on NASDAQ under symbol CMND and Frankfurt Stock Exchange under CWY0.

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