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NASDAQ: INM 1445 - 885 West Georgia St. Vancouver, BC, Canada V6C 3E8 Tel: +1.604.669.7207 Email: info@inmedpharma.com www.inmedpharma.com InMed Pharmaceuticals Announces $5 Million Private Placement Priced At-the-Market

Key Takeaway: InMed Pharmaceuticals has announced a private placement agreement to raise $5 million through the issuance of common shares and short-term preferred investment options. The offering will close on or about June 25, 2025, and is expected to aid in the development of its pipeline of small molecule drug candidates, particularly for rare cannabinoids. However, it comes with risks, as there are no guarantees concerning the exercise of investment options and the securities remain unregistered. The company has also agreed to amend existing preferred investment options to lower their exercise price to align with this offering.

Market Sentiment Analysis

POSITIVE FACTORS

  • InMed Pharmaceuticals is raising $5 million through a private placement.
  • The funds will support pipeline development of proprietary drug candidates.
  • The offering enables continued commercial sales of rare cannabinoids.

CONCERNS & RISKS

  • There is no assurance that any short-term preferred investment options will be exercised.
  • The securities offered are unregistered, limiting their marketability.

Full Press Release Details

InMed Pharmaceuticals Announces $5
Million Private Placement Priced At-the-Market Under Nasdaq Rules
Vancouver, British Columbia - June 25, 2025
- InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a pharmaceutical
company focused on developing a pipeline of proprietary small molecule drug candidates for diseases with high unmet medical needs, today
announced that it has entered into definitive agreements with a single institutional investor for the issuance and sale of 1,952,363 of
its common shares (or pre-funded warrants in lieu thereof) and short-term preferred investment options to purchase up to an aggregate
of 1,952,363 common shares, at a purchase price of $2.561 per share (or pre-funded warrant in lieu thereof) and associated short-term
preferred investment option in a private placement priced at-the-market under Nasdaq rules. The short-term preferred investment option
to be issued in the offering will be exercisable immediately upon issuance at an exercise price of $2.436 per share and will expire eighteen
months from the effective date of the Resale Registration Statement (as defined below).
H.C. Wainwright & Co. acted as the exclusive
placement agent for the offering.
The aggregate gross proceeds to the Company from
the offering are expected to be approximately $5 million, before deducting placement agent fees and other offering expenses. The offering
is expected to close on or about June 25, 2025, subject to the satisfaction of customary closing conditions. The potential additional
gross proceeds to the Company from the short-term preferred investment options, if fully-exercised on a cash basis, will be approximately
$4.75 million. No assurance can be given that any of such short-term preferred investment options will be exercised. The Company intends
to use the net proceeds from the offering to continue pipeline development of its pharmaceutical drug candidates, support commercial sales
of rare cannabinoids through its subsidiary BayMedica LLC, and for general working capital purposes.
The securities described above were offered in a private placement
under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act") and Regulation D promulgated thereunder and, along
with the common shares underlying the short-term preferred investment options sold in the offering, have not been registered under the
Act or applicable state securities laws. Accordingly, such securities may not be offered or sold in the United States absent registration
with the SEC or an applicable exemption from such registration requirements. The securities were offered only to accredited investors.
Pursuant to a registration rights agreement, the Company has agreed to file one or more registration statements with the SEC covering
the resale of the unregistered securities to be issued in the offering (the "Resale Registration Statement").
The Company also has agreed to amend certain existing
preferred investment options to purchase up to an aggregate of 199,115 common shares that were previously issued in October 2023 and have
an exercise price of $16.60 per share, for $0.125 per amended preferred investment option, effective upon the closing of the offering,
such that the amended preferred investment options will have a reduced exercise price of $2.436 per share.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such
state or jurisdiction.
To learn more about INM-901, please visit the
Pharmaceuticals is a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates targeting the
CB1/CB2 receptors. InMed's pipeline consists of three separate programs in the treatment of Alzheimer's, ocular and dermatological
indications. For more information, visit www.inmedpharma.com.
Vice President, Investor Relations
and Corporate Communications
Cautionary Note Regarding Forward-Looking Information:
This news release contains "forward-looking
information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning
of applicable securities laws. Forward-looking statements are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "potential", "possible", "would" and
similar expressions. Such statements, based as they are on current expectations of management, inherently involve numerous risks, uncertainties
and assumptions, known and unknown, many of which are beyond our control. Forward-looking information is based on management's current
expectations and beliefs and is subject to a number of risks and uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. Without limiting the foregoing, forward-looking information in this news release includes,
but is not limited to, statements about: the closing of the offering; the use of the net proceeds of the offering; the filing of a registration
statement by InMed with the SEC covering the resale of the unregistered securities issued in the offering and the exercise of the short-term
preferred investment options prior to their expiration.
Additionally, there are known and unknown risk
factors which could cause InMed's actual results, performance, or achievements to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking information contained herein. A complete discussion of the risks
and uncertainties facing InMed's stand-alone business is disclosed in InMed's Annual Report on Form 10-K, in Item 1A. of the
Quarterly Report for the period ended March 31, 2025, and other filings with the Securities and Exchange Commission on www.sec.gov.
All forward-looking information herein is qualified
in its entirety by this cautionary statement, and InMed disclaims any obligation to revise or update any such forward-looking information
or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results,
events or developments, except as required by law.

Frequently Asked Questions

What is the amount raised in InMed's private placement?

InMed Pharmaceuticals raised approximately $5 million in a private placement.

Who acted as the placement agent for the offering?

H.C. Wainwright & Co. served as the exclusive placement agent for the offering.

What will the proceeds be used for?

The proceeds will support pipeline development, commercial sales, and general working capital.

What is the exercise price of the new preferred investment options?

The exercise price for the short-term preferred investment options is $2.436 per share.

Who can buy the securities in this offering?

The securities were offered only to accredited investors under applicable securities laws.

Last updated: Jun 25, 2025