InMed slashes exercise prices to $0.80 on 2.3M preferred options
InMed Pharmaceuticals amended preferred investment options with Sabby Volatility Warrant Master Fund and H.C. Wainwright affiliates, cutting exercise prices on 2,151,478 and 153,236 share options from up to $82.50 to $0.80. These adjustments could enable subscription for 2.3 million common shares, raising dilution risk.
1. Amendment Agreements Executed
InMed entered into amending agreements with Sabby Volatility Warrant Master Fund and affiliates of H.C. Wainwright & Co., reducing the exercise price on existing preferred investment options to $0.80 per share. The amendments span options previously granted on October 26, 2023; June 26, 2025; and earlier issuances.
2. Original Option Terms
Prior to amendment, Sabby held rights to subscribe for 2,151,478 common shares at $2.436, while the Wainwright parties had rights to 153,236 shares at exercise prices of $82.50, $20.75, and $3.2013. All figures reflect post-consolidation terms and remain subject to adjustment.
3. Potential Dilution Impact
If fully exercised, the combined options would yield up to 2,304,714 new shares, representing significant dilution. Share count expansion at $0.80 could alter earnings per share and shareholder voting power, depending on subscription decisions.
4. Financing and Strategic Context
These private‐placement options are exercisable under Securities Act exemptions, with no guarantee of exercise. Lower exercise prices may accelerate liquidity for InMed but underscore the company’s need for accessible capital to advance its small molecule drug pipeline.