InMed Slashes Preferred Option Strike Price to $0.80 for 278,761 Shares
InMed has amended its preferred investment options with Armistice Capital, reducing the exercise price on 278,761 shares from $16.60 to $0.80. This adjustment could generate up to $223,009 in capital but poses potential dilution if all options are exercised.
1. Amendment Agreement
InMed and Armistice Capital Master Fund entered into an amendment to the preferred investment options dated October 26, 2023, lowering the exercise price from $16.60 to $0.80. The options cover up to 278,761 common shares and were initially issued in a private placement under Section 4(a)(2) and Regulation D.
2. Dilution and Funding Implications
If all amended options are exercised at $0.80, InMed would receive up to $223,009 in proceeds, while existing shareholders would face dilution of the share base. The sharply reduced strike price may encourage exercise, though there is no guarantee any options will be converted.
3. Forward-Looking Considerations
These preferred investment options remain subject to their original expiration and exercise conditions with no assurance of exercise before maturity. InMed will report any exercises and resulting impact on capitalization in its upcoming SEC filings.