Atai Life Sciences Bolsters Investment in IntelGenx Technologies

NEW YORK — Atai Life Sciences AG’s (Nasdaq: ATAI) confidence in IntelGenx Technologies Corp. (OTC: IGXT) seems unwavering as its investments in the pharmaceutical firm grow. The robust belief in IntelGenx’s medical technology continues to pave the way for increased financial collaborations between the two entities.

In August, IntelGenx disclosed the successful closure of a private placement from Atai, enriching the company’s coffers by approximately $3 million. This transaction poised Atai to dominate a sizable 63% stake in IntelGenx.

As of October 6, 2023, in a bid to further cement their partnership, both parties ratified the Second Amendment and the Subscription Agreement Amendments, taking effect on September 30, 2023. As per official statements, the duo embarked on “a second amended and restated loan agreement to provide for the Conversion Feature.” This agreement coincides with the Call Option, wherein IntelGenx granted Atai the exclusive option to acquire an additional 7,401 US Units anytime before August 31, 2026.

IntelGenx, primarily a drug delivery company, prides itself on producing pharmaceutical films. The firm’s comprehensive manufacturing facility ranges from lab-scale to commercial-scale production capabilities. Atai, recognizing the potential of IntelGenx’s film technology for psychedelic drug delivery, appears to be securing an exclusive deal. The companies are jointly exploring the development of a DMT oral film product.

A Historical Overview of Financial Transactions:

In March 2021, the initial financial association was inked with a loan agreement, allowing Atai to lend IntelGenx $2 million. This association grew in September 2021, when a renewed loan agreement expanded IntelGenx’s available principal loan amount by $6 million, summing up to $8.5 million.

Parallelly, in May 2021, Atai invested a significant $12.3 million in IntelGenx by purchasing stock and warrants.

Cannabis Film Endeavors:

IntelGenx’s previous collaborations include Cybin, though their current status seems ambiguous since Cybin does not feature in IntelGenx’s recent partner list. Heritage Cannabis and IntelGenx have joined forces to produce a CBD oral strip product.

Tracing back to 2018, IntelGenx and Tilray (OTC: TLRY) decided to develop a cannabis oral strip. However, the partnership hit rocky shores in 2021 when IntelGenx initiated an arbitration proceeding against Tilray, alleging a breach of their 2018 agreement. The issue remains unresolved, as IntelGenx confirmed ongoing arbitration hearings with Tilray in its latest earnings call.