Cybin Announces Completion of Previously Announced Share Consolidation

Rhea-AI Summary

Cybin Inc. (NYSE American: CYBN) (Cboe CA:CYBN), a clinical-stage neuropsychiatry company, has completed a share consolidation on a 38:1 basis. The consolidation, effective immediately, reduces the company's outstanding common shares from 759,692,495 to approximately 19,991,907. Trading of the consolidated shares begins today. This move does not affect shareholders' ownership percentages or voting power, except for minor adjustments due to fractional shares. The company has also adjusted the exercise price and number of shares issuable for outstanding warrants and options in line with the consolidation ratio.

Positive

• Share consolidation may improve stock marketability and attract institutional investors
• Consolidation maintains proportional ownership and voting power for existing shareholders

Negative

• Significant reduction in total outstanding shares may impact liquidity
• Potential for increased stock price volatility post-consolidation

Insights

Financial Analyst

The completion of Cybin's 38:1 share consolidation is a significant corporate action that could have mixed implications for investors. This move reduces the number of outstanding shares from 759,692,495 to approximately 19,991,907, potentially improving the company's capital structure and market perception.

Share consolidations are often implemented to meet minimum share price requirements for stock exchange listings or to attract institutional investors who may have restrictions on investing in low-priced stocks. However, it's important to note that this action doesn't inherently change Cybin's market capitalization or fundamental value.

Investors should be aware that while the consolidation may lead to a higher share price, it doesn't guarantee increased investor interest or improved liquidity. The success of this move will largely depend on Cybin's ability to deliver on its clinical-stage neuropsychiatry programs and generate positive news flow to support the new share structure.

Medical Research Analyst

As a clinical-stage biopharmaceutical company, Cybin's share consolidation doesn't directly impact its research and development progress. However, it could indirectly affect the company's ability to raise capital for future clinical trials and drug development initiatives.

Cybin's focus on "next-generation treatment options" in neuropsychiatry, particularly in mental healthcare, positions it in a rapidly evolving and potentially lucrative market. The consolidation might help attract more sophisticated investors who could provide the necessary funding for advancing its pipeline.

Investors should closely monitor Cybin's upcoming clinical milestones and regulatory interactions, as these will be the true drivers of the company's value, regardless of the share structure. The success of Cybin's innovative approaches in mental health treatments will ultimately determine its long-term prospects.

TORONTO--(BUSINESS WIRE)-- Cybin Inc. (NYSE American: CYBN) (Cboe CA:CYBN) (“Cybin” or the “Company”), a clinical-stage breakthrough neuropsychiatry company committed to revolutionizing mental healthcare by developing new and innovative next-generation treatment options, is pleased to announce that it has filed articles of amendment to consolidate the Company’s issued and outstanding common shares (the “Common Shares”) on the basis of one new Common Share for every 38 existing Common Shares (the “Consolidation”). The Consolidation is effective immediately and trading of the Common Shares reflecting the Consolidation will commence at the opening of trading today.

As a result of the Consolidation, the 759,692,495 Common Shares issued and outstanding prior to the Consolidation have been reduced to approximately 19,991,907 Common Shares, subject to adjustment for treatment of fractional Common Shares. Each shareholder’s percentage ownership in the Company and proportional voting power remains unchanged after the Consolidation, except for minor changes and adjustments resulting from the treatment of any fractional Common Shares.

The exercise price and number of Common Shares issuable upon exercise of the Company’s outstanding Common Share purchase warrants and options have been adjusted in accordance with the Consolidation.

About Cybin

Cybin is a clinical-stage breakthrough neuropsychiatry company on a mission to create safe and effective next-generation therapeutics to address the large unmet need for new and innovative treatment options for people who suffer from mental health conditions.

Cybin’s goal of revolutionizing mental healthcare is supported by a network of world-class partners and internationally recognized scientists aimed at progressing proprietary drug discovery platforms, innovative drug delivery systems, novel formulation approaches and treatment regimens. Cybin is currently developing CYB003, a proprietary deuterated psilocin program for the treatment of major depressive disorder and CYB004, a proprietary deuterated dimethyltryptamine program for generalized anxiety disorder and has a research pipeline of investigational psychedelic-based compounds.

Headquartered in Canada and founded in 2019, Cybin is operational in Canada, the United States, the United Kingdom, the Netherlands and Ireland. For Company updates and to learn more about Cybin, visit www.cybin.com or follow the Company on X, LinkedIn, YouTube and Instagram.

Cautionary Notes and Forward-Looking Statements

Certain statements in this news release relating to the Company are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements in this news release include statements regarding the Company’s plans to engineer proprietary drug discovery platforms, innovative drug delivery systems, novel formulation approaches and treatment regimens for mental health conditions.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the psychedelics market; the ability of the Company to successfully achieve its business objectives; plans for growth; political, social and environmental uncertainties; employee relations; the presence of laws and regulations that may impose restrictions in the markets where the Company operates; implications of disease outbreaks on the Company's operations; and the risk factors set out in each of the Company's management's discussion and analysis for the three months ended June 30, 2024 and the Company’s annual information form for the year ended March 31, 2024, which are available under the Company's profile on www.sedarplus.ca and with the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Cybin makes no medical, treatment or health benefit claims about Cybin’s proposed products. The U.S. Food and Drug Administration, Health Canada or other similar regulatory authorities have not evaluated claims regarding psilocin, psilocybin, psychedelic tryptamine, tryptamine derivatives or other psychedelic compounds. The efficacy of such products has not been confirmed by approved research. There is no assurance that the use of psilocin, psilocybin, psychedelic tryptamine, tryptamine derivatives or other psychedelic compounds can diagnose, treat, cure or prevent any disease or condition. Rigorous scientific research and clinical trials are needed. If Cybin cannot obtain the approvals or research necessary to commercialize its business, it may have a material adverse effect on Cybin’s performance and operations.

Neither the Cboe Canada, nor the NYSE American LLC stock exchange have approved or disapproved the contents of this news release and are not responsible for the adequacy and accuracy of the contents herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240918510328/en/

Investor & Media:

Gabriel Fahel

Chief Legal Officer

Cybin Inc.

1-866-292-4601

irteam@cybin.com – or – media@cybin.com

Source: Cybin Inc.

FAQ

What is the new share consolidation ratio for Cybin Inc. (CYBN)?

Cybin Inc. (CYBN) has completed a share consolidation on a 38:1 basis, meaning one new common share for every 38 existing common shares.

How many outstanding shares does Cybin (CYBN) have after the consolidation?

After the share consolidation, Cybin (CYBN) has approximately 19,991,907 common shares outstanding, reduced from 759,692,495 shares previously.

When does trading of Cybin's (CYBN) consolidated shares begin?

Trading of Cybin's (CYBN) consolidated shares begins at the opening of trading on the day of the announcement, which is the effective date of the consolidation.

How does the share consolidation affect Cybin's (CYBN) stock options and warrants?

The exercise price and number of common shares issuable upon exercise of Cybin's (CYBN) outstanding warrants and options have been adjusted in accordance with the 38:1 consolidation ratio.