InMed Pharmaceuticals Inc. announced that it has entered into a definitive agreement to issue 3,012,049 common shares at a purchase price of CAD 0.83 per share for gross proceeds of CAD 2,500,000.67, 3,012,049 prepaid warrants at an issue price of CAD 0.83 per share for the gross proceeds of CAD 2,500,000.67; aggregate gross proceeds of CAD 5,000,001.34 on October 24, 2023. In addition, the Company has agreed to issue to the investors in the offering unregistered preferred investment options to purchase up to an aggregate of 3,272,733 common shares at an issue price of CAD 0.83 per share. The transaction is expected to close on or about October 26, 2023, subject to the satisfaction of customary closing conditions.

The company has issued securities pursuant to the exemption provided under Regulation D. The company has made numerous assumptions regarding, among other things: the ability to obtain all necessary regulatory approvals on a timely basis, or at all; the closing of the offerings on a timely basis on the terms described herein, or at all; and continued economic and market stability. The outstanding preferred investment options issued in November 2022 and exercisable for 3,272,733 common shares, in the aggregate, to exercise such preferred investment options for cash at a reduced exercise price of CAD 0.83 per share, in exchange for unregistered new preferred investment options to purchase up to 6,545,466 common shares.