MagicMed Industries Inc said it has completed an oversubscribed brokered private placement which raised gross proceeds of $1,642,880 to fund the development of its portfolio of psychedelic derivative molecules.
Following the offering, the privately-owned Calgary-based company issued 6,571,520 new common shares at a price of $0.25 per share. The company now has 20,111,520 common shares outstanding held by 186 respective shareholders.
The company intends to use the new funds to expand its scientific team and expedite the development of MagicMed’s Psybrary, a molecular derivatives library designed to be a key platform for the psychedelics industry to develop new patented products.
While the compositions of natural and traditional synthetic psychedelic molecules are not patentable, the company explained that compositions of the “new derivative molecules” that comprise the MagicMed Psybrary are patentable, as are the company’s “proprietary methods” of manufacturing its new derivative molecules.
“The MagicMed Psybrary encompasses the patent portfolio and psychedelic derivative molecules that we offer as an acceleration platform to partner companies in this developing industry,” MagicMed CEO Joseph Tucker said in a statement.
MagicMed’s approach is to partner with pharmaceutical and other companies who can use the Psybrary as a building block to develop new patented products.
“Each derivative molecule in the Psybrary is a potential patented drug development candidate for our future biotech and pharmaceutical partners,” noted Dr Tucker.
All securities issued in connection with the offering are subject to resale restrictions in accordance with applicable securities laws.
Mackie Research acted as agent in connection with the offering. The company has paid to the agent a cash commission equal to 8% of the aggregate gross proceeds of the offering raised from eligible purchasers in addition to a work fee and certain expenses.
The Calgary-based company recently filed a provisional patent application with the US Patent and Trademark Office (USPTO) related to the composition of matter, drug formation and the process of preparation for novel psilocybin derivatives, the first in a series of applications that together are designed to protect the Psybrary.
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