MindMed Partners with K2 HealthVentures in $50 Million Credit Facility for Brain Health Research

NEW YORK — Mind Medicine (MindMed) Inc., a clinical-stage biopharmaceutical company focused on developing innovative solutions for brain health disorders, announced today the signing of a senior secured credit facility with K2 HealthVentures, a leading specialty finance company within the healthcare sector.

This agreement, involving an initial funding of $15.0 million out of the $50.0 million loan facility, strengthens MindMed’s financial standing and provides the firm with operational and strategic flexibility as it advances into crucial stages of development.

Strategic Partnership

Robert Barrow, CEO and Director of MindMed, expressed his enthusiasm for the collaboration, recognizing K2 HealthVentures as a strategic partner in the life sciences industry. He emphasized that this transaction arrives at a pivotal moment for MindMed, as the company anticipates several significant milestones, including the top-line readout of its Phase 2b study of MM-120 for treating generalized anxiety disorder later this year.

Austin Sherwindt, Managing Director at K2 HealthVentures, also highlighted the partnership’s importance, stating the belief in the long-term potential of MindMed’s pipeline. He expressed confidence in the company’s ability to reach critical development milestones in addressing significant unmet medical needs related to brain health disorders.

Terms of the Agreement

Under the terms of the credit facility, additional funding amounts of up to $20.0 million may be drawn over the loan term, subject to achieving certain milestones. There’s also an additional tranche of $15.0 million, which will be available at the mutual discretion of MindMed and the lender. While the company is under no obligation to draw these additional funds if they become available, the potential for further financing provides added financial stability.

Borrowings under this credit facility are set to mature on August 1, 2027. Detailed information about the credit facility has been filed with the Securities and Exchange Commission on a Current Report on Form 8-K, dated August 14, 2023.

About MindMed

MindMed operates at the intersection of medical research and innovative treatment, focusing on brain health disorders. With a mission to become the global leader in the development and delivery of solutions for these complex conditions, the company is developing a pipeline of product candidates, some with acute perceptual effects, targeting key neurotransmitter pathways.

Conclusion

The partnership between MindMed and K2 HealthVentures symbolizes a significant step in accelerating research and development in the field of brain health disorders. With increased financial stability and the potential to access further capital, MindMed appears well-positioned to pursue its ambitious development plans, and the industry will keenly watch how this collaboration translates into advancements in medical science.