First Avenue Ventures Life Science Fund I Invests in Diamond Therapeutics to Accelerate Innovation in Mental Health

TORONTO, April 4, 2023 /PRNewswire/ - Diamond Therapeutics Inc. ("Diamond"), a drug development company focused on low-dose psychedelic-derived therapies for use in the treatment of mental health, is pleased to announce a strategic investment round led by First Avenue Ventures Life Science Fund I (FAV LS Fund I), a multimillion-dollar life science fund with a focus on supporting research developed at the University of Alabama at Birmingham (UAB).

Proceeds from the fund's investment will support Diamond's collaboration with UAB on an investigator-led clinical trial of low-dose psilocybin to treat demoralization. The study has received FDA authorization. Noted UAB psychedelic researcher Dr. Peter Hendricks will be the principal investigator.

FAV LS Fund I is dedicated to investing in early-stage drugs, therapies and devices developed at UAB and in Birmingham.

"We are delighted to support Diamond in their important and innovative work with UAB and Dr. Peter Hendricks," says fund manager Mike Goodrich. "Our investment in Diamond and UAB's pioneering study of the effects of low doses of psilocybin on demoralization has the potential to offer new hope to the many people suffering from mood disorders."

"We are most grateful for First Avenue's support," says Judith Blumstock, CEO and Founder of Diamond. "The work we are doing with Dr. Hendricks and UAB is the first of its kind. There are no other studies examining the effects of psychedelics on demoralization. The fund's support will help advance our work to the next level, bringing us closer to our goal of offering patients new and better treatments." 

Diamond Therapeutics is a Toronto-based psychedelic pharmaceutical company. Our mission is to develop new and better drugs for mental health conditions by unlocking the promise of psychedelic compounds. Diamond's focus is developing and commercializing sub-perceptual, non-hallucinogenic treatments that hold potential for use across a broad patient cohort — maximizing the positive impact better drugs can have on the global mental health crisis. To learn more about Diamond, visit us at www.diamondthera.com.

The mission of First Avenue Ventures is to help grow the Birmingham entrepreneurial ecosystem. To that end, First Avenue launched the First Avenue Ventures Life Science Fund I. The multi-million-dollar Fund aims to invest in early-stage drugs, therapies, and devices, with a particular focus on research developed at the University of Alabama at Birmingham. By providing financial and human capital, the Fund hopes to generate and scale local life science activity and to drive momentum in the broader entrepreneurial ecosystem.

This news release includes certain "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes statements other than statements of historical fact that can be identified by phrases such as "expects", "anticipates", "intends", "aims", "plans" and "believes", and are based on expectations, estimates and projections as at the date of this news release. Forward-looking statements in this news release include, but are not limited to, the potential effects of low dose psilocybin and other psychedelic treatments, the potential use in treating mental health conditions and the timing and completion of Diamond's clinical programs and trials. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive applicable regulatory approvals; that factors may occur which impede Diamond's future business plans; the results of continued development, marketing and sales; and other factors beyond the control of Diamond. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Diamond disclaims any intention or obligation to update or revise any forward-looking information in this news release, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Diamond Therapeutics Inc.