InMed Pharmaceuticals (INM): Acquiring BayMedica

Rhea-AI Summary

InMed Pharmaceuticals has announced a definitive agreement to acquire BayMedica in an all-stock transaction valued at approximately US$4m. InMed will issue 1.78 million shares to BayMedica's equity and convertible debt holders. The acquisition aims to enhance expertise in cannabinoid manufacturing and commercialization, with a combined revenue exceeding US$2.5m since December 2019. Additionally, InMed's valuation has increased to US$242m or US$20.03 per share, despite a decrease in per-share value due to a higher share count.

Positive

• Strategic acquisition of BayMedica enhances cannabinoid manufacturing capabilities.
• Cumulative revenues of over US$2.5m since December 2019 demonstrate commercial viability.
• InMed's overall valuation increased to US$242m following a US$12m financing.

Negative

• Per-share value decreased from US$29.27 to US$20.03 due to higher shares outstanding.

LONDON, UK / ACCESSWIRE / September 20, 2021 / InMed has announced that it has entered into a definitive agreement to acquire BayMedica, a private US-based company that is focusing on the manufacture and commercialization of rare cannabinoids. This is an all-stock transaction in which InMed will issue 1.78m shares to BayMedica's equity and convertible debt holders. At the current stock price, this values BayMedica at approximately US$4m. Following the closure of the transaction, the combined company will have expertise in both yeast and bacteria biosynthesis as well as chemical synthesis of cannabinoids. Additionally, it will be a commercial company with cumulative revenues of over US$2.5m since December 2019 stemming from the sale of cannabichromene (CBC). The acquisition is expected to close in the coming weeks.

We have adjusted our valuation to US$242m or US$20.03 per basic share, from US$236m or US$29.27 per basic share. The total valuation rose due to higher net cash following a US$12m (gross) calendar Q221 financing, while the per-share value decreased due to a higher number of shares outstanding.

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SOURCE: Edison Investment Research Limited

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FAQ

What is the significance of InMed Pharmaceuticals' acquisition of BayMedica?

The acquisition enhances InMed's manufacturing capabilities in rare cannabinoids, potentially increasing market share.

How much is the acquisition of BayMedica valued at?

The acquisition is valued at approximately US$4 million in an all-stock transaction.

What impact does the acquisition have on InMed's valuation?

InMed's valuation increased to US$242 million following recent financing, despite a decrease in its per-share value.

When is the acquisition of BayMedica expected to close?

The acquisition is expected to close in the coming weeks.

How much revenue has InMed accumulated since December 2019?

InMed has reported cumulative revenues of over US$2.5 million since December 2019 from cannabinoid sales.