InMed Pharmaceuticals Amends Preferred Investment Options

InMed Pharmaceuticals (NASDAQ: INM) amended previously issued preferred investment options with Sabby Volatility Warrant Master Fund and affiliates of H.C.

Rhea-AI Summary

InMed Pharmaceuticals (NASDAQ: INM) amended previously issued preferred investment options with Sabby Volatility Warrant Master Fund and affiliates of H.C. Wainwright to change exercise prices to $0.80 per share. The amendments apply to rights to subscribe for up to 2,151,478 shares (Sabby) and 153,236 shares (Wainwright) on a post-consolidation basis. The options were issued in private placements under Section 4(a)(2) and Regulation D. No assurance any options will be exercised.

Positive

• Exercise prices unified at $0.80 for all amended Preferred Investment Options
• Aggregate subscription capacity preserved at 2,304,714 post-consolidation shares

Negative

• Potential dilution from up to 2,304,714 shares if all options exercised at $0.80
• No assurance provided that any Preferred Investment Options will be exercised

Argus Apr 28 session

-4.31% close to close Open Argus

Details

News Market Reaction – INM

On Apr 28, the first trading day after this news, INM closed 4.31% below the previous close.

Data tracked by StockTitan Argus for the Apr 28 session.

Key Figures

Sabby option shares: 2,151,478 shares Original Sabby exercise price: $2.436 per share Wainwright option shares: 153,236 shares +5 more

Sabby option shares

2,151,478 shares

Aggregate common shares underlying Sabby Preferred Investment Options (post-consolidation)

Original Sabby exercise price

$2.436 per share

Prior Sabby Preferred Investment Options exercise price

Wainwright option shares

153,236 shares

Aggregate common shares under Wainwright Preferred Investment Options (post-consolidation)

Original Wainwright prices

$82.50, $20.75, $3.2013

Previous Wainwright exercise prices (post-consolidation, subject to adjustment)

Revised exercise price

$0.80 per share

New exercise price for all Sabby and Wainwright Preferred Investment Options

ATM offering size

$1,213,648

Common shares offered under at-the-market program per 424B5 on 2026-04-03

Shelf registration size

$50,000,000

Maximum aggregate amount under Form S-3 shelf filed 2026-03-20

Public float

$3,640,946

Public float based on non-affiliate holdings as of April 1, 2026

Historical Context

5 past events · Latest: Mar 27

5 events

1. Mar 27

   Nasdaq compliance notice

   24h Move

   -6.2%

   Nasdaq notified INM its bid price fell below the $1.00 minimum threshold.

2. Mar 23

   Preclinical data update

   24h Move

   -6.9%

   INM-901 showed dose-dependent neuroinflammation reductions in 3D human brain organoid models.

3. Mar 09

   Pipeline development plan

   24h Move

   -3.7%

   Company outlined 2026 priorities to advance INM-901 and INM-089 toward IND and trials.

4. Mar 06

   BayMedica wind-down

   24h Move

   -3.7%

   Decision to exit BayMedica’s commercial business and incur one-time costs while refocusing pipeline.

5. Feb 11

   Earnings and update

   24h Move

   -10.1%

   Q2 FY2026 results showed net loss, BayMedica revenue decline, and limited cash runway into Q4 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

preferred investment options, Section 4(a)(2), Regulation D, Form 8-K, +3 more

7 terms

preferred investment options financial

"InMed Pharmaceuticals Inc. ... entered into amending agreements in respect of preferred investment options"

Preferred investment options are choices that typically offer a safer and more stable way to grow or protect your money, often providing consistent returns or income. They matter to investors because they can help balance risk and reward, serving as a reliable foundation in an investment portfolio—similar to choosing a well-established route over a risky shortcut.

Section 4(a)(2) regulatory

"private placements pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended"

Section 4(a)(2) is a part of U.S. securities laws that allows companies to sell their stock directly to certain investors without registering the sale with regulators. This process is often used for private placements, making it easier and faster for companies to raise money from knowledgeable or institutional investors. It matters to investors because it provides an alternative way to buy shares, often with fewer disclosures and lower costs.

Regulation D regulatory

"and Regulation D promulgated thereunder. No assurance can be given that any"

Regulation D is a set of rules that govern how companies can raise money from investors without going through the full process required for public stock offerings. It provides simplified options for private placements, making it easier for companies to seek investments from a smaller group of investors. For investors, it offers opportunities to invest in private companies, often with fewer restrictions, but also with different levels of risk and disclosure.

Form 8-K regulatory

"including the Company's Current Reports on Form 8-K filed with the Securities"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

at-the-market financial

"offering up to $1,213,648 of its common shares in an at-the-market offering"

"At-the-market" is a method for companies to sell new shares of stock directly into the open market over time, rather than all at once. It allows companies to raise money gradually, similar to selling slices of a pie instead of the entire pie at once, which can help manage the sale's impact on the stock price. This approach gives investors a steady supply of shares while providing companies with flexible funding options.

shelf registration statement regulatory

"pursuant to a shelf registration statement on Form S-3, which was filed on March 20, 2026"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

Form S-3 regulatory

"shelf registration statement on Form S-3, which was filed on March 20, 2026"

Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.

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Vancouver, British Columbia--(Newsfile Corp. - April 27, 2026) - InMed Pharmaceuticals Inc. (NASDAQ: INM) ("InMed" or the "Company"), a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates for diseases with high unmet medical needs, today announces that it has entered into amending agreements in respect of preferred investment options previously entered into with each of Sabby Volatility Warrant Master Fund, Ltd. ("Sabby") and certain affiliates of H.C. Wainwright & Co., LLC (the "Wainwright Parties").

As previously reported:

• pursuant to the terms of the preferred investment options dated October 26, 2023 and June 26, 2025 (together, the "Sabby Preferred Investment Options"), the Company provided Sabby with the right to subscribe for and purchase from the Company, in the aggregate, up to 2,151,478 common shares in the capital of the Company (on a post-consolidation basis) at an exercise price per common share of $2.436, subject to adjustment (the "Sabby Exercise Price"); and

• pursuant to the terms of the preferred investment options dated November 21, 2022, October 26, 2023 and June 26, 2025 issued to the Wainwright Parties (collectively, the "Wainwright Preferred Investment Options", and together with the Sabby Preferred Investment Options, the "Preferred Investment Options"), the Company provided the Wainwright Parties with the right to subscribe for and purchase from the Company, in the aggregate, up to 153,236 common shares in the capital of the Company (on a post-consolidation basis) at exercise prices per common share of $82.50, $20.75 and $3.2013 (in each case, on a post-consolidation basis), respectively, subject to adjustment in each case (collectively, the "Wainwright Exercise Prices").

The Company has entered into: (i) an amending agreement with Sabby in respect of the Sabby Preferred Investment Options to amend the Sabby Exercise Price to $0.80; and (ii) amending agreements with the Wainwright Parties in respect of the Wainwright Preferred Investment Options to amend the Wainwright Exercise Prices in the Wainwright Preferred Investment Options to $0.80.

Each of the Preferred Investment Options were offered in private placements pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder. No assurance can be given that any of the Preferred Investment Options will be exercised.

For further information, please see the Company's filings with the Securities and Exchange Commission, including the Company's Current Reports on Form 8-K filed with the Securities and Exchange Commission from time to time.

About InMed

InMed Pharmaceuticals is a pharmaceutical company focused on developing a pipeline of proprietary small molecule drug candidates targeting the CB1/CB2 receptors. InMed's pipeline consists of three separate programs in the treatment of Alzheimer's, ocular and dermatological indications. Together with our subsidiary BayMedica, we are a global leader in the manufacturing, development and commercialization of products based on rare cannabinoids and their proprietary, small molecule drug analogs. For more information, visit www.inmedpharma.com.

Investor Contact:
Colin Clancy
Vice President, Investor Relations
and Corporate Communications
T: +1.604.416.0999
E: ir@inmedpharma.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. Without limiting the foregoing, forward-looking information in this news release includes, but is not limited to, statements about the exercise of the Preferred Investment Options prior to their expiration.

With respect to the forward-looking information contained in this news release, InMed has made numerous assumptions regarding, among other things: the ability to obtain all necessary regulatory approvals on a timely basis, or at all; and continued economic and market stability. 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. A complete discussion of the risks and uncertainties facing InMed's stand-alone business is disclosed in InMed's Annual Report on Form 10-K, InMed's Quarterly Report on Form 10-Q and other filings with the Security and Exchange Commission on www.sec.gov.

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/294412

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did InMed (INM) change about the Sabby Preferred Investment Options on April 27, 2026?

The Sabby exercise price was amended to $0.80 per share. According to the company, this applies to rights to subscribe for up to 2,151,478 post-consolidation common shares previously granted to Sabby.

How many shares can the Wainwright Parties subscribe for after the INM amendment?

The Wainwright Parties retain rights to subscribe for up to 153,236 post-consolidation shares. According to the company, the Wainwright exercise prices were amended to $0.80 for those options.

What is the total potential share count affected by InMed's April 27, 2026 amendments?

Up to 2,304,714 post-consolidation common shares are affected in aggregate. According to the company, that total combines Sabby’s and Wainwright’s subscription capacities under the amended options.

Were the amended Preferred Investment Options offered publicly or privately for INM?

They were offered in private placements under Section 4(a)(2) and Regulation D. According to the company, the options remain private-placement instruments and not registered public offerings.

Does InMed guarantee that the amended options at $0.80 will be exercised?

No, the company gave no assurance that any Preferred Investment Options will be exercised. According to the company, exercise remains at the option holders’ discretion and subject to adjustment.