• The Week’s Closed Equity Deals
  • On January 31, 2024, Skye Bioscience, a clinical-stage biotechnology company focused on the discovery, development, and commercialization of novel classes of therapeutic drugs that modulate the endocannabinoid system, closed a PIPE transaction for total gross proceeds of $50.25M.
  • Skye sold the equivalent of 21.8M shares at $2.305 per share, a discount of 23% from the preannouncement share price, representing excellent execution considering the deal increased total share count by around 165%
  • The transaction implies a market cap of $80.6M and an enterprise value of $20.M.
  • Proceeds will fund operations into early 2026, including:
    • Phase 2 clinical trials for nimacimab for obesity
    • Phase 2a clinical trial for SBI-100, a glaucoma and ocular hypertension drug
    • Ongoing R&D and general corporate purposes.
  • Skye’s free cash flow adjusted current ratio, proforma for the financing, is 3.6x, ratifying the claim that it is fully funded for the next two years.
  • Skye’s stock price has reacted favorably to the equity sale, rising 67% since the deal was announced.

Public vs. Private Raises: 

• Both raisers this week were public companies. Both trade in the U.S. on the OTC. One also trades in Canada on the CSE.

Equity vs. Debt Cap Raises: 

• Equity accounted for both capital raises this week.