Novamind Inc. announced that it has entered into a securities purchase agreement with a single institutional investor for a private placement of 12,500,000 common shares at a price of CAD 0.40 per share gross proceeds of CAD 5,000,000 on January 24, 2022. The company will also issue warrants to purchase up to an aggregate of 12,500,000 shares. Each warrant will entitle the holder to purchase one common share at an exercise price of CAD 0.50 per share for a period of five years following the issuance date.

The private placement is expected to close on or about January 26, 2022, subject to satisfaction of customary closing conditions. No securities were offered or sold to Canadian residents in connection with the private placement. The company will receive CAD 4,999,225 pursuant to regulation D.