CALGARY, AB, Sept. 2, 2020 /PRNewswire/ - MagicMed Industries Inc. ("MagicMed" or the "Company") is pleased to announce that it has completed, and oversubscribed, its previously announced brokered private placement (the "Offering") for gross proceeds of $1,642,880. Pursuant to the Offering, the Company issued 6,571,520 new common shares at a price of $0.25 per common share. The Company now has 20,111,520 common shares outstanding held by 186 respective shareholders.
The Company intends to use the net proceeds from the Offering for general working capital purposes and to expand its scientific team to expedite and amplify development of the MagicMed PsybraryTM. While the compositions of natural and traditional synthetic psychedelic molecules are not patentable, the compositions of the new derivative molecules that comprise the MagicMed PsybraryTM are patentable, as are MagicMed's proprietary methods of manufacturing its new derivative molecules.
"The MagicMed PsybraryTM encompasses the patent portfolio and psychedelic derivative molecules that we offer as an acceleration platform to partner companies in this developing industry," said MagicMed CEO, Dr. Joseph Tucker. "Each derivative molecule in the PsybraryTM is a potential patented drug development candidate for our future biotech and pharmaceutical partners."
The Offering was made by way of private placement in Canada pursuant to exemptions from prospectus requirements under applicable securities laws. All securities issued in connection with the Offering are subject to resale restrictions in accordance with applicable securities laws.
Mackie Research Capital Corporation (the "Agent") acted as agent in connection with the Offering. The Company has paid to the Agent a cash commission equal to 8.0% of the aggregate gross proceeds of the Offering raised from eligible purchasers in addition to a work fee and certain expenses of the Agent.
MagicMed Industries intends to partner with pharmaceutical and other companies to develop psychedelic-derived medicinal and licit consumer goods products. MagicMed's molecular derivatives library, the PsybraryTM is anticipated to be an essential building block from which industry can develop new patented products. The initial focus of the PsybraryTM is on psilocybin, which is expected to be opportunistically expanded to other psychedelics like MDMA, ketamine, Ibogaine, Mescaline, and Ayahuasca. For more information, please visit our website at www.magicmedindustries.com @MagicMedInd.
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. All statements other than statements of present or historical fact are forward-looking statements, including statements with respect to MagicMed's future business plans and partnerships, the anticipated uses of MagicMed's patents and the development of the PsybraryTM. Forward-looking statements include words or expressions such as "proposed", "anticipated", "will", "subject to", "near future", "in the event", "would", "expect", "prepared to" and other similar words or expressions.
Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Some of the risks and other factors could cause results to differ materially from those expressed in the forward-looking statements which include, but are not limited to: the ability of MagicMed to secure patent protection; the ability of MagicMed to enter into partnership agreements or other arrangements; unforeseen challenges in carrying out the business plans of MagicMed; trends in the future use of psilocybin; general business, economic, competitive, political and social uncertainties; the state of capital markets; risks relating to general economic, market and business conditions; and other unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We disclaim any obligation to update or revise these forward-looking statements, except as required by applicable law.
SOURCE MagicMed Industries Inc.