MindBio Therapeutics Corp. (Frankfurt: WF6) (CSE: MBIO) on Friday announced a new financing package that includes a private placement and substantial debt settlements to help strengthen its cash position.

The company plans to raise up to $170,000 via a non-brokered private placement of 15.45 million common shares priced at $0.011 per share, according to a news release. At the same time, MindBio is working to settle $1.76 million in outstanding debt through the issuance of up to 160 million shares at the same price.

The Vancouver-based firm specializes in microdosing psychedelic medicines for mental health conditions. Its lead candidate, MB22001, is described as a “proprietary titratable form of Lysergic Acid Diethylamide (LSD) designed for take-home microdosing.”

According to the announcement, MindBio has completed Phase 1 clinical trials in 80 healthy participants and a Phase 2a trial in patients with major depressive disorder, with “positive top line data reported” for both. The company is currently conducting two Phase 2B trials – one in cancer patients experiencing existential distress and another in patients with MDD. It also received approval for multiple Phase 1/Phase 2B trials focused on women’s health.

The private placement is expected to close around April 18, pending approval from the Canadian Securities Exchange. MindBio may pay finder’s fees of up to 8% of the gross proceeds, which could be settled through cash or additional shares at the offering price.

The company noted that the debt settlement arrangements concern “certain unsecured loans and payables that are due and owing.” Insiders may participate in the debt settlement.

The company said it intends to rely on exemptions from formal valuation and minority shareholder approval requirements since “no securities of the Company are listed on specified markets and the fair market value of the debt being settled by interested parties does not exceed 25% of the Company’s market capitalization.”

New Mexico Gov. Michelle Lujan Grisham signed the Medical Psilocybin Act, making it the third state in the country to legalize access to psilocybin.

Green Market Report had previously written that S.B. 219, also known as the Medical Psilocybin Act, was approved with bipartisan veto-proof majorities in both chambers of the state legislature.  The New Mexico House of Representatives approved S.B. 219 on March 18 on a 56-8 vote, while the state Senate had cleared it approximately one week previous on a 33-4 vote.

Cosponsor Sen. Craig Brandt (R-Rio Rancho) said in a statement in January that he was hopeful this treatment option will benefit his “fellow veterans” who may be dealing with post-traumatic stress disorder or other mental health conditions.

Source NM wrote in January, cosponsor Rep. Elizabeth “Liz” Thomson (D-Albuquerque) said, “When we’re facing epidemic levels of depression, anxiety, PTSD, and other debilitating mental health conditions, we owe it to those suffering to explore promising new treatments like psilocybin. By establishing a highly-regulated, state-run program, we can provide alternative options to those not responding to traditional treatment, in a safe, controlled environment.”

According to the bill, the qualifying conditions for patients would include, at first, major treatment-resistant depression, post-traumatic stress disorder, substance use disorders and end-of-life care. Health regulators would be empowered to add additional qualifying conditions. In addition to that, some patients may qualify for treatments funded through the medical psilocybin treatment equity fund.

The department will monitor producers and clinicians to make sure they comply with the law. The department will also work with the board, state higher education institutions and health care providers to collect and analyze data to develop best practices, including best settings for the administration of psilocybin and by Dec. 31, 2027, implement the program. When developing the program, the department is also expected to engage in tribal consultation per the State-Tribal Collaboration Act.

According to the bill, a medical psilocybin advisory board will be created, consisting of nine members who are knowledgeable about the medical use of psilocybin. At least one member shall be an enrolled member of an Indian nation, tribe or pueblo located wholly or partially in New Mexico. In addition to the tribal member, the law states that one member will be a mental or behavioral health equity advocate, one member will be a representative of the health care authority, and at least one member will be a veteran of the United States Armed Forces.

The law will also create a “medical psilocybin research fund” as a nonreverting fund in the state treasury. The fund will consist of appropriations, gifts, grants and donations.

SB0219

Colorado has now licensed its first psychedelic healing center since passing Proposition 122, called The Center Origin.

“We are honored to lead the way in bringing regulated psychedelic services to Colorado,” said Elizabeth Cooke, co-founder and CEO of The Center Origin. “This licensure represents not only a major step forward in mental health treatment and individual and community healing, but also a commitment to safety, education and responsible care for those exploring the therapeutic and transformative potential of psychedelics.”

The Center Origin said it is dedicated to offering safe, guided psychedelic experiences facilitated by trained professionals in a controlled and supportive environment. It will also provide microdosing support to ensure a comprehensive and ethical healing process. The center said it will serve individuals seeking relief from conditions such as PTSD, depression, anxiety and end-of-life distress, among other mental health challenges.

The Center Origin said in a statement that it provides comprehensive in-house support to facilitators working with center clients and offers basic room rental services for facilitators bringing their clients. Additionally, the company said that clients are provided with thoughtfully crafted comfort items, including food and drinks, personalized gifts, and small luxuries to enhance their journey.

The clinic will not only provide a place for treatment, but has also established a training center in partnership with several Colorado Department of Regulatory Agencies-approved didactic training programs. The Center Origin’s co-founder and clinical director, Mikki Vogt, said clinical programs also include consultation services to facilitators-in-training and those seeking ongoing professional development.

In addition, the center said it offers monthly professional case conferences, a variety of ongoing provider training for continued professional development and a referral network of facilitators for clients to choose from.