InMed Reports Full Year Fiscal 2026 Financial Results and Provides Corporate Update
InMed advances its planned merger with Mentari, backed by $490 million of expected pre-closing financing, while reporting higher losses and lower cash.
Rhea-AI Summary
InMed Pharmaceuticals (INM) reported fiscal year 2026 results and highlighted progress on its proposed merger with Mentari Therapeutics, dated September 9, 2026.
The merger agreement signed in May 2026 would create a combined company operating as Mentari Therapeutics and expected to trade under ticker MTRI, focused on migraine prevention. Mentari completed an oversubscribed $290 million private placement in May and a further $200 million round in July, for approximately $490 million in anticipated pre‑closing financing, which the company said should fund operations into 2029 and through Phase 2a readouts of two PACAP‑targeted lead programs. InMed plans to grant legacy shareholders CVRs tied to potential monetization of INM‑901, INM‑089 and INM‑755.
InMed posted a fiscal 2026 net loss of $12.9 million versus $8.2 million a year earlier, with research and development expenses of $3.0 million and general and administrative expenses of $6.7 million. Cash, cash equivalents and short‑term investments fell to $2.2 million at June 30, 2026, from $10.7 million at June 30, 2025. Operations of subsidiary BayMedica were discontinued, with its results presented as discontinued operations.
Positive
- Mentari pre-closing private placements expected to raise $490 million
- Combined company cash runway projected to extend into 2029
- Funding expected to cover Phase 2a readouts for two PACAP programs
- Net finance expense improved to $10.7k from $371.5k
- Operating cash outflow held at $8.6 million vs $8.1 million prior year
- Legacy asset value retention via shareholder CVRs on INM-901, INM-089, INM-755
Negative
- Net loss rose to $12.9 million from $8.2 million year over year
- Cash and equivalents dropped to $2.2 million from $10.7 million
- Total assets declined to $3.0 million from $15.6 million
- Shareholders’ equity fell to $1.1 million from $13.4 million
- BayMedica sales declined to $3.2 million from $5.0 million before discontinuation
- Research and development and G&A expenses increased to a combined $9.7 million
News Explained
The proposed merger has not reached closing: the Form S-4 remains ineffective, and shareholder approvals plus other closing conditions are still required, so the planned change to InMed holders' corporate exposure is not yet in effect.
Key Figures
- Net loss
- $12.9 million
- Fiscal year ended June 30, 2026; $8.2 million previous fiscal year
- Cash and short-term investments
- $2.2 million
- As of June 30, 2026
- Additional private placement
- $200 million
- Announced by Mentari in July 2026
- Aggregate pre-closing financing
- $490 million
- Expected financing before the proposed merger
- Cash runway
- 2029
- Expected combined-company runway from expanded financing
- Merger closing target
- Q4 2026
- Subject to shareholder approvals, Form S-4 effectiveness, and customary conditions
- Research and development expenses
- $3.0 million
- Fiscal year ended June 30, 2026; $2.8 million previous fiscal year
- General and administrative expenses
- $6.7 million
- Fiscal year ended June 30, 2026; $5.4 million previous fiscal year
Previous Earnings Reports
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Quarterly loss and cash position accompanied INM-901 preclinical updates.
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Quarterly loss, declining BayMedica revenue, and cash runway update.
-
Quarterly loss, lower cash, and BayMedica revenue decline were reported.
-
Annual loss and cash runway accompanied INM-901 and INM-089 progress.
-
Quarterly loss increased while BayMedica revenue and pipeline programs advanced.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
contingent value rights financial
form s-4 regulatory
pre-investigational new drug regulatory
discontinued operations financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - September 9, 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 reported financial results for its fiscal year ended June 30, 2026.
The Company's full financial statements and related MD&A for the fiscal year ended June 30, 2026, are available at www.inmedpharma.com, www.sedarplus.ca and www.sec.gov.
"This has been an important year for InMed as we position InMed for its next phase through the proposed merger with Mentari Therapeutics, Inc.," commented Eric A. Adams, InMed President and CEO.
"The additional
Corporate Update
Proposed Merger with Mentari Therapeutics
In May 2026, InMed entered into a definitive merger agreement with Mentari Therapeutics, Inc. ("Mentari"), a privately held biotechnology company developing next-generation therapies for migraine prevention. Upon closing of the proposed merger (the "Merger"), the combined company is expected to operate as Mentari Therapeutics, Inc. and trade on the Nasdaq Capital Market under the ticker symbol "MTRI". The combined company will focus on advancing Mentari's pipeline of migraine prevention therapies.
In May 2026, in connection with the Merger, Mentari announced an oversubscribed
In July 2026, InMed filed a registration statement on Form S-4 (the "Form S-4") with the U.S. Securities and Exchange Commission in connection with the Merger that includes a preliminary proxy statement/prospectus of InMed and a management information circular and subsequently announced an amendment to the merger agreement that, among other matters, clarified the sequencing of certain transactions, the impact of the pre-closing financing on the exchange ratio and the intended tax treatment of the Merger. The Form S-4 has not yet become effective. After the Form S-4 is declared effective, InMed will mail a definitive proxy statement/prospectus and management information circular to its shareholders and to Mentari's stockholders.
The Merger remains on track to close in the fourth quarter of calendar year 2026, subject to the satisfaction or waiver of customary closing conditions, including approval by InMed shareholders and Mentari stockholders and the effectiveness of the Form S-4.
InMed Pharmaceutical Assets
InMed continues to pursue strategic opportunities for its legacy pharmaceutical development programs, including INM-901 for Alzheimer's disease, INM-089 for dry age-related macular degeneration and INM-755 for dermatology. Under the terms of the proposed transaction, legacy InMed shareholders are expected to receive CVRs related to the potential future monetization of these programs.
During the fiscal year, InMed continued to advance the development and transaction readiness of INM-901. The Company recently conducted a pre-Investigational New Drug ("IND") meeting with the U.S. Food and Drug Administration ("FDA") for the INM-901 program and is integrating FDA feedback into drug development planning. InMed also continues to engage with potential strategic parties regarding opportunities to acquire or license INM-901, INM-089 and/or INM-755.
Discontinued Operations
During the fiscal year, a decision was made to discontinue the operations of InMed's wholly owned subsidiary, BayMedica, LLC ("BayMedica"). As of June 30, 2026, BayMedica had wound down all of its operating activities, as well as terminated its commercial lease at the end of August 2026. BayMedica's financial results are presented as discontinued operations in the Company's consolidated financial statements.
Financial Commentary
For the fiscal year ended June 30, 2026, the Company recorded a net loss of
Research and development expenses were
General and administrative expenses were
For the fiscal year ended June 30, 2026, BayMedica, which is presented as discontinued operations, recorded sales of
As of June 30, 2026, the Company had cash, cash equivalents and short-term investments of
Table 1. Consolidated Balance Sheet
(Expressed in US Dollars)
| June 30, | June 30, | ||||
| 2026 | 2025 | ||||
| $ | $ | ||||
| ASSETS | |||||
| Current | |||||
| Cash and cash equivalents | 2,194,413 | 10,743,430 | |||
| Short-term investments | 39,670 | 43,384 | |||
| Prepaids and other current assets | 241,296 | 319,547 | |||
| Held for sale equipment | 20,000 | - | |||
| Current assets of discontinued operations | 181,327 | 1,760,918 | |||
| Total current assets | 2,676,706 | 12,867,279 | |||
| Non-Current | |||||
| Property, equipment and ROU assets, net | 221,037 | 992,199 | |||
| Intangible assets, net | - | 1,620,562 | |||
| Other assets | 132,324 | 100,000 | |||
| Total Assets | 3,030,067 | 15,580,040 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current | |||||
| Accounts payable and accrued liabilities | 1,843,327 | 1,230,845 | |||
| Current portion of lease obligations | - | 435,507 | |||
| Current liabilities of discontinued operations | 111,733 | 173,438 | |||
| Total current liabilities | 1,955,060 | 1,839,790 | |||
| Non-current | |||||
| Lease obligations, net of current portion | - | 305,755 | |||
| Total Liabilities | 1,955,060 | 2,145,545 | |||
| Commitments and Contingencies (Note 11) | |||||
| Shareholders' Equity | |||||
| Common shares, no par value, unlimited authorized shares: 5,339,436 and 2,002,186 as of June 30, 2026 and June 30, 2025, respectively, issued and outstanding | 94,282,698 | 91,221,174 | |||
| Additional paid-in capital | 36,894,146 | 39,322,644 | |||
| Accumulated deficit | (130,230,406) | (117,237,892) | |||
| Accumulated other comprehensive income | 128,569 | 128,569 | |||
| Total Shareholders' Equity | 1,075,007 | 13,434,495 | |||
| Total Liabilities and Shareholders' Equity | 3,030,067 | 15,580,040 |
Table 2. Consolidated Statement of Operations
(Expressed in US Dollars)
| June 30, | June 30, | ||||
| 2026 | 2025 | ||||
| $ | $ | ||||
| Operating Expenses | |||||
| Research and development | 3,028,473 | 2,821,202 | |||
| General and administrative | 6,661,372 | 5,414,525 | |||
| Amortization and depreciation | 205,271 | 210,443 | |||
| Loss on disposal of equipment | 7,136 | - | |||
| Impairment of equipment | 189,225 | - | |||
| Impairment of intangible assets | 1,457,926 | - | |||
| Foreign exchange loss | 58,009 | 28,471 | |||
| Total operating expenses | 11,607,412 | 8,474,641 | |||
| Other Income (Expense) | |||||
| Interest and other income | 244,971 | 155,882 | |||
| Finance expense | (10,700) | (371,549) | |||
| Loss from continuing operations before taxes | (11,373,141) | (8,690,308) | |||
| Income tax expense | - | - | |||
| Net loss from continuing operations | (11,373,141) | (8,690,308) | |||
| Discontinued operations: | |||||
| Income (Loss) from discontinued operations | (1,187,709) | 528,175 | |||
| Income tax benefit | - | - | |||
| Income (Loss) from discontinued operations | (1,187,709) | 528,175 | |||
| Net Loss | (12,560,850) | (8,162,133) | |||
| Deemed dividends | (431,664) | - | |||
| Net loss attributable to common shareholders | (12,992,514) | (8,162,133) | |||
| Net loss per share for the year | |||||
| Basic and diluted: | |||||
| Continuing operations | (2.84) | (8.90) | |||
| Discontinued operations | (0.29) | 0.54 | |||
| Net loss per share attributable to Common Stockholders - basic and diluted | (3.12) | (8.36) | |||
| Weighted average outstanding common shares | |||||
| Basic and diluted | 4,163,598 | 975,895 |
Table 3. Consolidated Statements of Cashflows
Expressed in US Dollars
| June 30, | June 30, | ||||
| 2026 | 2025 | ||||
| Cash used in: | $ | $ | |||
| Operating Activities | |||||
| Net loss | (12,560,850) | (8,162,133) | |||
| Items not requiring cash: | |||||
| Amortization and depreciation | 205,271 | 212,839 | |||
| Share-based compensation | 106,866 | 119,307 | |||
| Amortization of right-of-use assets | 503,085 | 321,885 | |||
| Loss on disposal of fixed assets | 7,136 | - | |||
| Impairment of fixed assets | 189,225 | - | |||
| Impairment of intangible assets | 1,457,926 | - | |||
| Interest income received on short-term investments | (1,073) | - | |||
| Unrealized foreign exchange loss | 7,151 | 75,894 | |||
| Changes in operating assets and liabilities: | |||||
| Prepaids and other currents assets | 83,038 | 166,256 | |||
| Other non-current assets | (32,324) | - | |||
| Accounts payable and accrued liabilities | 618,679 | (220,017) | |||
| Lease obligations | (745,529) | (429,880) | |||
| Operating cash flow used by discontinued operations | 1,517,886 | (183,543) | |||
| Total cash used in operating activities | (8,643,513) | (8,099,392) | |||
| Investing Activities | |||||
| Sale of short-term investments | 41,340 | 42,270 | |||
| Purchase of short-term investments | (41,340) | (42,270) | |||
| Total cash used in investing activities | - | - | |||
| Financing Activities | |||||
| Proceeds from the sale of pre-funded warrants | - | 5,024,891 | |||
| Proceeds from the private placement | 231,675 | 8,130,299 | |||
| Share issuance costs | (137,179) | (883,978) | |||
| Total cash provided by financing activities | 94,496 | 12,271,212 | |||
| Increase (decrease) in cash and cash equivalents during the period | (8,549,017) | 4,171,820 | |||
| Cash and cash equivalents beginning of the year | 10,743,430 | 6,571,610 | |||
| Cash and cash equivalents end of the year | 2,194,413 | 10,743,430 | |||
| SUPPLEMENTARY CASH FLOW INFORMATION: | |||||
| Cash paid during the period for: | |||||
| Income taxes | - | - | |||
| Interest | - | - | |||
| SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||
| Deemed dividends | 431,664 | - | |||
| Fixed asset reclassified to held for sale equipment | 20,000 | ||||
| Recognition of Right-of-use asset and corresponding operating lease | - | 187,223 | |||
| Preferred investment options to its placement agent | - | 281,810 | |||
| Fair value of warrant modification recorded as equity issuance | - | 116,482 | |||
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. 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 regarding the proposed merger with Mentari, including the anticipated timing and completion of the merger and other contemplated transactions; the expected aggregate proceeds from the pre-closing financing; the expected cash runway of the combined company; the potential future monetization of INM-901,INM-089 and INM-755; the Company's efforts to identify strategic opportunities for INM-901, INM-089 and INM-755; the expected nature, focus and operations of the combined company following the merger; and the integration of comments from a pre-IND meeting with the FDA for INM-901.
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; the satisfaction or waiver of the conditions to the completion of the proposed merger with Mentari, including the receipt of required shareholder and stockholder approvals; 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 that 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, as may be updated from time to time by InMed's Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission available at 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.
No Offer or Solicitation
This communication is for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy, any securities, or the solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Without limiting the foregoing, this communication does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in connection with any private placement or other financing by Mentari or InMed. Any such securities have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act or an applicable exemption therefrom.
Important Additional Information About the Merger and Where to Find It
In connection with the proposed merger, InMed has filed with the SEC a registration statement on Form S-4 that includes a preliminary proxy statement/prospectus of InMed and a management information circular and will file other relevant documents with the SEC and applicable Canadian securities regulators. The Form S-4 has not yet become effective. After the Form S-4 is declared effective, InMed will mail a definitive proxy statement/prospectus and management information circular to its shareholders and to Mentari's stockholders. INVESTORS AND SECURITYHOLDERS OF INMED AND MENTARI ARE URGED TO READ THE FORM S-4, THE PROXY STATEMENT/PROSPECTUS AND MANAGEMENT INFORMATION CIRCULAR (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS) AND ALL OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC AND CANADIAN SECURITIES REGULATORS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT INMED, MENTARI, THE MERGER AND RELATED MATTERS. Investors and securityholders may obtain free copies of these documents (when available) through the SEC's website at www.sec.gov, on SEDAR+ at www.sedarplus.ca, or from InMed at inmedpharma.com/investors.
Participants in the Solicitation
InMed, Mentari and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from InMed's shareholders and Mentari's stockholders in connection with the proposed merger. Information regarding InMed's directors and executive officers and a description of their direct and indirect interests, by security holdings or otherwise, is set forth in InMed's most recent annual report on Form 10-K and its other filings with the SEC and on SEDAR+. Additional information regarding the participants and their interests is or will be contained in the proxy statement/prospectus and management information circular and other relevant materials filed or to be filed with the SEC and Canadian securities regulators. These documents may be obtained free of charge as described above.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/313685
FAQ
When is the InMed–Mentari merger expected to close and what approvals are required?
The merger is targeted to close in the fourth quarter of calendar year 2026. Closing is subject to customary conditions, including approval by InMed shareholders, approval by Mentari stockholders, and the effectiveness of InMed’s Form S‑4 registration statement with the U.S. Securities and Exchange Commission.
What will the combined company be called and what will be its trading symbol?
Upon closing of the merger, the combined company is expected to operate as Mentari Therapeutics, Inc. and to trade on the Nasdaq Capital Market under the ticker symbol “MTRI”. The combined entity will focus on advancing Mentari’s pipeline of migraine prevention therapies.
How are InMed’s legacy pharmaceutical programs being treated in the proposed transaction?
Legacy InMed shareholders are expected to receive contingent value rights (CVRs) linked to potential future monetization of InMed’s programs, including INM‑901 for Alzheimer’s disease, INM‑089 for dry age‑related macular degeneration and INM‑755 for dermatology. InMed continues to explore acquisition or licensing opportunities for these assets.
What recent regulatory and partnering steps has InMed taken for INM‑901?
InMed recently held a pre‑IND meeting with the U.S. Food and Drug Administration for the INM‑901 program and is incorporating the FDA’s feedback into its drug development plans. The company is also in discussions with potential strategic parties about acquiring or licensing INM‑901, INM‑089 and/or INM‑755.
What actions were taken regarding BayMedica and how are its results reported?
During fiscal 2026, InMed decided to discontinue operations of its wholly owned subsidiary BayMedica. As of June 30, 2026, BayMedica had wound down all operating activities, and its commercial lease was terminated at the end of August 2026. BayMedica’s financial results are presented as discontinued operations in InMed’s consolidated financial statements.
Where can investors access the detailed merger documents and full financial statements?
Investors can access InMed’s full financial statements and MD&A for the fiscal year ended June 30, 2026 at www.inmedpharma.com, www.sedarplus.ca and www.sec.gov. The Form S‑4 registration statement, including the proxy statement/prospectus and management information circular, and any related amendments or supplements, will also be available on the SEC’s website, on SEDAR+, and via InMed’s investor relations website when they become available.