atai Life Sciences (NASDAQ;ATAI) amended a loan agreement with IntelGenx Technologies (TSXV:IGX; OTCQB:IGXT) to support IntelGenx’s conditionally approved graduation from the TSX Venture Exchange to the Toronto Stock Exchange.
Completion of the uplisting and the commencement of trading of IntelGenx’s common shares, 8% convertible debentures with a maturity date of June 30, 2022, and warrants expiring on Feb. 11, 2023 is subject to the satisfaction by IntelGenx of all of the final conditions of listing.
atai has agreed to increase the principal amount of its outstanding $2.5-million loan to IntelGenx by an additional $6-million, with $3-million to become available to IntelGenx in each of January 2022 and January 2023. The loan is in addition to atai’s previously announced initial equity investment of an approximately 25% interest in IntelGenx.
As part of a strategic accord, IntelGenx partnered exclusively with atai to develop formulations of compounds for the prevention or treatment of mental health diseases or disorders, including compounds that have psychedelic, entactogenic and/or oneirophrenic properties, such as DMT and psilocybin, among others.
atai agreed to increase the loan principal in part on the basis of early data generated from its ongoing feasibility studies with IntelGenx.
“I’m excited about our companies’ mutual efforts to advance our robust pipelines, while finding synergistic ways to work together to develop better compounds and modes of delivery to benefit patients,” Dr. Horst Zerbe, CEO of IntelGenx, said in a statement.
Florian Brand, CEO of atai, said the transaction illustrates atai’s confidence in IntelGenx’s film technology and the potential it has in the development of product candidates to treat mental health disorders.”