Cybin Raises $175M in Direct Offering, Reinforcing Psychedelic Pipeline

TORONTO – Cybin Inc., a clinical-stage biopharmaceutical company focused on psychedelic-based treatments for mental health disorders, disclosed a $175 million registered direct offering, drawing commitments from a roster of established biotech investors.

The deal, priced at $6.51 per share or pre-funded warrant, stands as the biggest capital infusion in the psychedelics field [!] this year, outpacing Compass Pathways’ $150 million public offering from January.

The transaction involves roughly 22.3 million common shares and accompanying warrants, exercisable at $8.14 per share through mid-2027 or earlier based on trial milestones for Cybin’s lead candidate, CYB003, a deuterated psilocin analog targeting major depressive disorder.

Participants include Venrock Healthcare Capital Partners, OrbiMed, Point72, Deep Track Capital, Acorn Bioventures, Spruce Street Capital, Squadron Capital Management, Adage Capital Partners LP, Boxer Capital Management, ADAR1 Capital Management, Stonepine Capital Management, Pivotal Bioventure Partners, and Ally Bridge Group, signaling sustained interest from institutional players despite the sector’s volatility. Jefferies, TD Cowen, and Cantor served as lead placement agents, with the offering slated to close by Friday pending regulatory nods from the NYSE American and Cboe Canada.

Cybin plans to deploy the funds primarily to retire $120 million in convertible debt owed to High Trail Special Situations LLC, a move that clears a key overhang and trims interest expenses by about 8% annually. The balance will support Phase 3 trials for CYB003, which earned breakthrough therapy designation from the FDA, alongside Phase 2 work on CYB004 for generalized anxiety disorder and early development of CYB005 for other neuropsychiatric indications. This allocation reflects a deliberate shift toward derisking the balance sheet while accelerating a pipeline that has shown dose-dependent efficacy in interim data, with CYB003 demonstrating sustained symptom relief in depression patients for up to six months post-administration.

The raise arrives at a moment when psychedelics developers face tightening capital markets, with venture funding down 15% year-over-year through Q3 2025 amid broader biotech headwinds. However, Cybin’s success here underscores a premium on companies with differentiated molecules [its deuterated formulations aim to extend therapeutic windows and reduce side effects compared to off-patent psychedelics] and robust data packages.

For Cybin, this infusion extends its cash runway into 2028, providing breathing room to hit topline results from the ongoing APPROACH trial by mid-2026. It also positions the company to weather potential delays without dilutive follow-on financings – a common pitfall for peers.