On Monday, Cybin Inc (OTCQB: CLXPF) closed at $1.6732, up 5.90 percent, and its day-range has been $1.7600 to $1.6000. Cybin stock surged 17.83% over the past month with average volume of 271.70K shares.
The CLXPF stock gained 60.90% in the past three months while the average volume was 400.55K. The CLXPF stock has experienced an annual gain of 142.58%, reaching a high of $2.2350 with a market cap of $247.89M. CLXPF stock rose for positive results of a pre-clinical trial.
What was that trial for?
Cybin is one of the leading biotechnology companies focusing on the development of psychedelic therapeutics. CLXPF utilizes its patent-pending drug discovery platforms, innovative drug delivery systems, novel formulation approaches, and potential treatment regimens to discover new treatments for mental illness.
In the period beginning January 1, 2021, Cybin announced that Adelia Therapeutics Inc. (“Adelia”) has achieved certain milestones in relation to earn-outs.
- Cybin, Cybin Corp., Cybin US Holdings Inc. (the “Acquirer”), a wholly-owned subsidiary of Cybin, and all previous Adelia shareholders agreed to meet the milestones in a contribution agreement dated December 4, 2020.
- As part of various milestones in the earn-out process, positive pre-clinical results were achieved.
- The results of the study indicated that proprietary deuteration modifications did not alter pharmacodynamic properties of multiple new chemical entities.
- Furthermore, the deuterated analogs were as safe as their non-deuterated counterparts in in-vitro toxicity tests.
- CLXPF believes that this preliminary evidence adds value to Cybin’s pipeline of novel, proprietary psychedelic molecules by showing their performance on certain important metrics is comparable to that of naturally occurring compounds.
- CLXPF differentiates itself from psychedelic companies mainly by developing its own compounds.
- In accordance with the terms of the Transaction Agreement, Adelia Shareholders will receive Class B common shares in the capital of the CLXPF upon meeting the relevant milestone.
How will CLXPF handle it?
In addition to the Class B Shares granted by Cybin (CLXPF) to the Adelia Shareholders, the Class B Shares may be exchanged for shares of Cybin in exchange for the Class B Shares (at the option of the shareholder and subject to customary adjustments).
The Transaction Agreement provides that no Class B Shares can be exchanged before the first anniversary of the date of the closing of the contribution transaction. The Transaction Agreement closes on December 14, 2020. According to the Transaction Agreement and applicable securities law, Class B Shares issued to Adelia Shareholders are exchangeable for CLXPF Shares at the prevailing issue price.
