InMed Pharmaceuticals Inc (OTCMKTS:IMLFF) has rocketed back toward the stock’s recent highs following last week’s sudden shakeout on news that the US Attorney General has moved to put the kibosh on the trend of state-level marijuana legalization in the world’s biggest economy. That pullback came in the wake of the stock’s massive year-end run, which took shares up by over 150% in less than two weeks.
We have seen a string of brokered and non-brokered institutional capital investments in Canadian pot plays following the Cole Memo announcement, and IMLFF is another prime example of that trend: The company just announced non-brokered private placement for gross proceeds of C$9.4 Million through the issuance of 13,428,571 units, with terms as previously announced on December 18, 2017. The original offering anticipated gross proceeds of C$2.5 Million.
InMed Pharmaceuticals Inc (OTCMKTS:IMLFF) casts itself as a biopharmaceutical company specializing in developing cannabis-based therapies through the Research and Development into the extensive pharmacology of cannabinoids coupled with innovative drug delivery systems.
IMLFF is utilizing its proprietary Intelligent Cannabinoid Drug Design Platform to identify new bioactive compounds within the cannabis plant that interact with certain gene targets responsible for specific diseases.
The big picture is that this is a pre-clinical stage biopharmaceutical company specializing in the research, development, and commercialization of cannabinoid-based therapies to treat human diseases with high unmet medical needs. The Company has three core assets: a proprietary Bioinformatics assessment tool to match individual (or combination of) cannabinoids against disease targets; a proprietary Biosynthesis cannabinoid manufacturing system to economically produce all 90+ cannabinoids at pharmaceutical-grade (>99.5% purity); and drug development program enabled by the two aforementioned tools. Leaders in the pipeline include a treatment for the symptoms and, potentially, the underlying disease in Epidermolysis Bullosa, a rare, devastating genetic skin disorder; and, a once-a-day eyedrops formulation of cannabinoids to treat Glaucoma, one of the leading causes of blindness in the developed world.
According to company materials, “InMed is a pre-clinical stage biopharmaceutical company that specializes in developing novel therapies through the research and development into the extensive pharmacology of cannabinoids coupled with innovative drug delivery systems. InMed’s proprietary platform technology, product pipeline and accelerated development pathway are the fundamental value drivers of the company.”
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As noted above, the company just pulled in a little over $7.5 million in new capital in the wake of the legislative hiccup in the US. Shares responded positively to the announcement, and with good reason.
“The Company welcomes such a positive response from the investment community,” stated Eric A. Adams, President & CEO, “We are very pleased to be in a position to close the financing, on an oversubscribed basis, so quickly. With this financing, InMed is well positioned with a strong balance sheet to continue to execute on corporate objectives. We have significantly extended the cash runway for our lead programs, INM-750 for EB and biosynthesis, and will be able to make significant advancements for both INM-085 for glaucoma and INM-405 for pain.”
According to the release, the Company also intends to use the net proceeds from the private placement for general working capital and corporate purposes and to seek a listing of its common shares on the Toronto Stock Exchange.
Traders will note approaching 180% piled on for shareholders of the stock during the trailing month. This is emblematic of the stock. IMLFF is a stock with a past that has featured a litany of sudden rips to the upside. What’s more, the stock has benefitted from a jump in recent trading volume to the tune of exceeding 380% beyond its prior sustained average level.
Currently trading at a market capitalization of $230.8M, IMLFF has a significant war chest ($6M) of cash on the books, which is balanced by virtually no total current liabilities. The company is pre-revenue at this point. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $IMLFF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $IMLFF, either long or short, and we have not been compensated for this article.