UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 13, 2021

 

 

 

INMED PHARMACEUTICALS INC.

(Exact Name of Company as Specified in Charter)

 

 

 

British Columbia   001-39685   98-1428279

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

InMed Pharmaceuticals Inc.

Suite 310 - 815 W. Hastings Street,

Vancouver, B.C.

Canada

  V6C 1B4
(Address of Principal Executive Offices)   (Zip Code)

 

Company’s telephone number, including area code: (604) 669-7207

 

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class  

Trading Symbol(s)

  Name of each exchange on which registered
Common Shares, no par value   INM   The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company  ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 

 

 

 

Item 7.01 Regulation FD Disclosure.

 

On May 13, 2021, the Company reported financial results for the third quarter of fiscal year 2021 (“3Q21”) which ended March 31, 2021.

 

The information set forth in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information set forth in this Item 7.01, including Exhibit 99.1, shall not be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits:

 

The following exhibits shall be deemed to be furnished, and not filed:

 

Exhibit
No.
  Description
   
99.1   News release, dated May 13, 2021

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  INMED PHARMACEUTICALS INC.
     
Date: May 13, 2021   By: /s/ Bruce Colwill
    Bruce Colwill
    Chief Financial Officer

 

 

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Exhibit 99.1

 

 

 

 

NASDAQ:INM

 

Suite 310-815 W. Hastings St.

Vancouver, BC, Canada V6C 1B4

Tel: +1.604.669.7207

Email: info@inmedpharma.com

www.inmedpharma.com

 

InMed Pharmaceuticals Reports Third Quarter Fiscal 2021 Financial Results

 

Vancouver, BC – May 13, 2021 – InMed Pharmaceuticals Inc. (“InMed” or the “Company”) (NASDAQ:INM), a clinical-stage company developing pharmaceutical-based drug candidates and leading the way in the clinical development of cannabinol (“CBN”), today reported financial results for the third quarter of fiscal year 2021 (“3Q21”) which ended March 31, 2021.

 

The Company will be hosting a conference call to present the 3Q21 results, as follows:

 

Conference Call & Webcast*:

Thursday, May 13, 2021 at 8:00 AM Pacific Time, 11:00 AM Eastern Time

US/CANADA Participant Toll-Free Dial-In Number: +1 (855) 605-1745
US/CANADA Participant International Dial-In Number: +1 (914) 987-7959
Conference ID: 3186833
Webcast: https://edge.media-server.com/mmc/p/ajuejmko

(*Webcast replay available for 90 days)

 

The Company’s 10-Q including financial statements and related MD&A for the third quarter ending March 31, 2021 are available at www.inmedpharma.com, www.sedar.com and at www.sec.gov.

 

“In the third quarter of fiscal 2021, significant progress was made in InMed’s INM-755 therapeutic program and IntegraSynTM manufacturing approach, resulting in the announcement of important milestones shortly after the quarter’s end,” said InMed President and Chief Executive Officer, Eric A. Adams. “The submission of Clinical Trial Applications in several countries, seeking permission to begin a Phase 2 safety and efficacy clinical trial in Epidermolysis Bullosa patients and the achievement of a commercially viable yield using the IntegraSynTM manufacturing approach bring us one step closer to delivering new therapeutic alternatives to patients who may benefit from cannabinoid-based pharmaceutical drugs. In addition to our R&D advances this past quarter, we continue to explore business development opportunities as a potential avenue to build the Company and accelerate our programs.”

 

Research & Development Update:

 

INM-755 for the Treatment of Epidermolysis Bullosa (“EB”):

 

·On April 28, 2021, InMed announced that it had filed Clinical Trial Applications (“CTAs”) in Austria, Israel and Serbia as part of a Phase 2 clinical trial of INM-755 (cannabinol) cream in Epidermolysis Bullosa (“EB”). Since then, additional CTAs for 755-201-EB (the ’201 study) have been submitted to National Competent Authorities (“NCAs”) and Ethics Committees (“ECs”) in France and Germany. We also expect to file CTAs in Greece and Italy in the coming weeks. Responses from the NCAs and ECs are expected throughout July and August 2021; timing will vary slightly by country due to differences in local procedures. The ’201 study is designed to enroll up to 20 patients, conservatively within 10-12 months, and will take place at 10 pre-qualified clinical sites in the above-mentioned countries. All four subtypes of inherited EB, being EB Simplex, Dystrophic EB, Junctional EB, and Kindler Syndrome, are eligible for this study in which InMed will evaluate the safety of INM-755 (cannabinol) cream and its preliminary efficacy in treating symptoms and healing wounds over a 28-day period. The study will use a within-patient, double-blind design whereby matched index areas will be randomized to INM-755 (cannabinol) cream or vehicle cream as a control.  

 

 

 

 

IntegraSynTM:

 

·On April 26, 2021, InMed announced that its IntegraSynTM cannabinoid manufacturing approach had achieved a level of 2g/L cannabinoid yield, a milestone that signals commercial viability and supports advancement to large-scale production in the coming months. Having achieved a 2g/L yield level, InMed will now focus on manufacturing scale-up to larger batch sizes while continuing process and enzyme optimization, targeting increased cannabinoid yield and further reducing the overall cost of goods. In parallel, the Company continues to prepare the manufacturing process to be Good Manufacturing Practice (GMP)-ready for pharmaceutical quality production. The next stage of large-scale production is to produce a batch with a target output of one kilogram of the selected cannabinoid in 2H2021 via a GMP-ready process.

 

Financing Activity and Results of Operations (expressed in US Dollars):

 

·On February 5, 2021, the Company announced that it had entered into definitive agreements with certain institutional investors to raise aggregate gross proceeds of approximately $4.5 million and on February 16, 2021, the Company announced that it had closed the private placement. Under the terms of the private placement, an aggregate of 1,050,000 units were purchased, each unit comprised of one common share and 0.66 of a warrant to purchase one common share, at a placement price of $4.25 per unit. The warrants have an exercise price of $4.85, are exercisable six months following issuance, and have a term of five and one half years following issuance. After the placement agent fees and estimated offering expenses payable by the Company, the Company received net proceeds of approximately $4.0 million.

 

·On April 27, 2021, InMed announced that, based on the strong trading data on the Nasdaq, it had provided written notice to the Toronto Stock Exchange (the “TSX”) regarding the voluntary delisting of its common shares. InMed’s common shares will continue to be listed and tradable on the Nasdaq under “INM”. The Company believes that the trading volume of its shares on the TSX no longer justified the expense and administrative efforts associated with maintaining this dual listing. InMed’s common shares were delisted from the TSX at the close of trading on May 7, 2021.

 

·For the three and nine months ended March 31, 2021, the Company recorded a net loss of $3.1 million and $6.9 million, or $0.41 and $1.11 per share, compared with a net loss of $2.0 million and $7.3 million, or $0.39 and $1.40 per share, for the three and nine months ended March 31, 2020.

 

·Research and development expenses were $1.8 million for 3Q21, compared with $1.3 million for the three months ended March 31, 2020. The increase in research and development and patents expenses was primarily due to increased spend on the INM-755 program, including the preparation during this period for the planned commencement of a Phase 2 trial. For the nine months ended March 31, 2021, research and development expenses totaled $3.6 million, compared with $4.8 million for the same period in fiscal 2020. The reduction in research and development and patents expenses was primarily due to decreased spending on the integrated cannabinoid manufacturing program and the INM-755 program, including decreased purchases of the active pharmaceutical ingredients used in INM-755 clinical trials. In addition, share-based payments were lower for the nine months ended March 31, 2021.

 

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·The Company incurred general and administrative expenses of $1.3 million for 3Q21, compared with $0.9 million for the three months ended March 31, 2020. For the nine months ended March 31, 2021, general and administrative expenses totaled $2.9 million, compared with $2.7 million for the same period in fiscal 2020. The increase results from a combination of changes including substantially higher insurance fees, offset by lower share-based payments and lower legal costs associated with negotiating contracts and other matters in the current period and certain current year legal costs being capitalized to equity.

 

·The Company also incurred non-cash, share-based payments in connection with the grant of stock options, of $0.2 million for each of 3Q21 and the three months ended March 31, 2020. For the nine months ended March 31, 2021, non-cash, share-based payments totaled $0.4 million compared with $0.8 million for the comparable period in fiscal 2020. Share-based payments amounts are included within research and development expenses and general and administrative expenses.

 

·At March 31, 2021, the Company’s cash, cash equivalents and short-term investments were $9.5 million, which compares to $5.8 million at June 30, 2020. The increase in cash, cash equivalents and short-term investments during the nine months to March 31, 2021, was primarily the result of the November 16, 2020 public offering and the February 16, 2021 private placement partially offset by cash outflows from operating activities.

 

·At March 31, 2021, the Company’s total issued and outstanding shares were 8,050,707. Including outstanding stock options and warrants, as at March 31, 2021, the Company had 11,415,228 shares on a fully diluted basis. During the three and nine months ending March 31, 2021, the weighted average number of common shares was 7,549,040 and 6,277,824, which is used for the calculation of loss per share for the respective interim periods.

  

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Table 1: Condensed consolidated interim balance sheets (unaudited):

 

InMed Pharmaceuticals Inc. 

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (unaudited)  

As at March 31, 2021 and June 30, 2020    

Expressed in U.S. Dollars

 

   March 31,   June 30, 
   2021   2020 
         
ASSETS        
Current          
    Cash and cash equivalents   9,454,113    5,805,809 
    Short-term investments   45,765    42,384 
    Accounts receivable   70,300    45,344 
    Prepaids and other assets   1,326,526    418,920 
Total current assets   10,896,704    6,312,457 
           
Non-Current          
    Property and equipment, net   347,892    403,485 
    Intangible assets, net   1,085,748    1,086,655 
    Other assets   14,655    - 
Total Assets   12,344,999    7,802,597 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Current          
    Accounts payables and accrued liabilities   1,635,477    1,607,303 
    Current portion of lease obligations   78,818    68,965 
Total current liabilities   1,714,295    1,676,268 
           
Non-current          
    Lease obligations   216,234    248,011 
Total Liabilities   1,930,529    1,924,279 
           
Shareholders’ Equity          
Common shares, no par value, unlimited authorized shares: 8,050,707 (June 30, 2020 - 5,220,707) issued and outstanding   60,587,417    53,065,240 
   Additional paid-in capital   21,292,201    17,764,333 
   Accumulated deficit   (71,593,717)   (64,649,381)
   Accumulated other comprehensive income (loss)   128,569    (301,874)
Total Shareholders’ Equity   10,414,470    5,878,318 
Total Liabilities and Shareholders’ Equity   12,344,999    7,802,597 

 

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Table 2: Condensed consolidated interim statements of operations and comprehensive loss (unaudited):

 

InMed Pharmaceuticals Inc.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited)

For the three and nine months ended March 31, 2021 and 2020

Expressed in U.S. Dollars        

 

   Three Months Ended   Nine Months Ended 
   March 31   March 31 
   2021   2020   2021   2020 
   $   $   $   $ 
Operating Expenses                
    Research and development and patents   1,772,593    1,274,913    3,621,697    4,843,656 
    General and administrative   1,333,725    902,289    2,918,067    2,661,545 
    Amortization and depreciation   27,421    27,113    92,218    85,572 
Total operating expenses   3,133,739    2,204,315    6,631,982    7,590,773 
                     
Other Income (Loss)                    
    Interest income   3,797    26,330    11,192    125,231 
    Finance expense   -    -    (360,350)   - 
    Unrealized gain on derivative warrants liability   -    -    242,628    - 
    Foreign exchange gain (loss)   28,467    153,927    (205,824)   142,677 
Net loss for the period   (3,101,475)   (2,024,058)   (6,944,336)   (7,322,865)
                     
Other Comprehensive Loss                    
    Foreign currency translation (loss) gain   -    (717,510)   430,443    (685,834)
Total comprehensive loss for the period   (3,101,475)   (2,741,568)   (6,513,893)   (8,008,699)
                     
Net loss per share for the year                    
    Basic and diluted   (0.41)   (0.39)   (1.11)   (1.40)
Weighted average outstanding common shares                    
    Basic and diluted   7,549,040    5,220,707    6,277,824    5,220,707 

 

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Table 3: Condensed consolidated interim statements of cash flows (unaudited):

 

InMed Pharmaceuticals Inc.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (unaudited)

For the nine months ended March 31, 2021 and 2020

Expressed in U.S. Dollars    

 

   2021   2020 
         
Cash provided by (used in):  $   $ 
         
Operating Activities        
Net loss for the period   (6,944,336)   (7,322,865)
Items not requiring cash:          
    Amortization and depreciation   92,218    85,572 
    Share-based compensation   389,343    838,304 
    Non-cash lease expense   88,620    63,130 
    Loss on disposal of assets   -    2,331 
    Received interest income on short-term investments   159    80,819 
    Unrealized gain on derivative warrants liability   (242,628)   - 
    Unrealized gain on foreign exchange   (571)   - 
Payments on lease obligations   (66,537)   (48,865)
Finance expense   360,350    - 
Changes in non-cash working capital:        - 
    Prepaids and other assets   (1,192,936)   72,428 
    Other non-current assets   (14,161)   - 
    Accounts receivable   (18,183)   29,704 
    Accounts payable and accrued liabilities   (235,892)   223,369 
Total cash used in operating activities   (7,784,554)   (5,976,073)
           
Investing Activities          
    Maturity of short-term investments   -    3,876,269 
    Purchase of short-term investments   -    (43,619)
    Proceeds on disposal of property and equipment   -    546 
    Purchase of property and equipment   -    (43,496)
Total cash provided by investing activities   -    3,789,700 
           
Financing Activities          
    Shares issued for cash   12,472,500    - 
    Share issuance costs   (1,534,602)   - 
Total cash provided by financing activities   10,937,898    - 
Effects of foreign exchange on cash and cash equivalents   494,960    (682,210)
Increase (decrease) in cash during the period   3,648,304    (2,868,583)
Cash and cash equivalents beginning of the period   5,805,809    9,837,213 
Cash and cash equivalents end of the period   9,454,113    6,968,630 

 

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About InMed: InMed Pharmaceuticals is a clinical-stage company developing a pipeline of cannabinoid-based pharmaceutical drug candidates, initially focused on the therapeutic benefits of cannabinol (CBN) in diseases with high unmet medical need. The Company is dedicated to delivering new therapeutic alternatives to patients that may benefit from cannabinoid-based pharmaceutical drugs. For more information, visit www.inmedpharma.com.

 

Investor Contact:

Edison Advisors for InMed Pharmaceuticals

Joe Green/Laine Yonker

T: +1.646.653.7030/+1.646.653.7035

E: jgreen@edisongroup.com / lyonker@edisongroup.com

 

Cautionary Note Regarding Forward-Looking Information:

 

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is based on management’s current expectations and beliefs and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking information in this news release includes statements about: leading the way in the clinical development of cannabinol (“CBN”); developing a pipeline of cannabinoid-based medications in diseases with high unmet medical need; delivering new therapeutic alternatives to patients that may benefit from cannabinoid-based medicines; filing additional clinical trial applications in selected countries and the timing thereof; patient enrollment and the timing thereof; exploring business development opportunities as a potential avenue to build the Company and accelerate InMed’s programs; anticipated responses from regulatory authorities and ethics committees and the timing thereof; anticipated enrollment and locations of clinical sites; commercial viability of IntegraSyn™ and advancement to large-scale production and the timing thereof; the focus of the Company on manufacturing scale-up of IntegraSyn™ to larger batch sizes while continuing process and enzyme optimization; IntegraSyn™ targeting increased cannabinoid yield and reducing overall costs; the preparation for IntegraSyn™ to be GMP-ready; and IntegraSyn™ targeting an output of one kilogram of the selected cannabinoid in 2H2021 via a GMP-ready process.

 

With respect to the forward-looking information contained in this news release, InMed has made numerous assumptions. While InMed considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies.

 

Additionally, there are known and unknown risk factors which could cause InMed’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: regulatory filings may not be filed or approved on a timely basis, or at all; the outbreak and impact of COVID-19 may worsen; preclinical and clinical testing may not produce the desired results on a timely basis, or at all; cannabis licensing/importing issues may delay our projected development timelines; suitable partners may not be located; economic or market conditions may worsen; our existing cash runway may not allow us to complete our forthcoming significant milestones; the development of IntegraSyn™ for the production of pharmaceutical-grade cannabinoids as well as a pipeline of medications targeting diseases with high unmet medical needs may not be as successful as desired, if at all. A more complete discussion of the risks and uncertainties facing InMed is disclosed in InMed’s filings with the Security and Exchange Commission and the most recent Annual Information Form and other continuous disclosure filed with Canadian securities regulatory authorities on SEDAR at www.sedar.com.

 

All forward-looking information herein is qualified in its entirety by this cautionary statement, and InMed disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

 

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