Connect with us


Cybin Finacial Analysis: Future Prospects are Uncertain

On Monday, Cybin released the financial results for its first quarter, ending June 30, 2023. As of June 30, 2023, the company had $9.4 million (Canadian…



This article was originally published by

On Monday, Cybin released the financial results for its first quarter, ending June 30, 2023.

As of June 30, 2023, the company had $9.4 million (Canadian dollars) in cash. It translates to about $6.9 in US Dollars. The press release also included the current cash position, which is $18 million as of August 14, 2023, or about $13.4 million USD.

It is not common for companies to include the amount of current cash on hand in these types of press releases. However, given the incredibly low amount of cash that Cybin had at the end of the last quarter, the number was undoubtedly included to ease investor concerns. 

The additional capital came from a public offering two weeks ago. Investors were not pleased with the dilutive financing, and the stock took an immediate hit. 

Cybin’s stock dropped 27.5% in the days following the announcement of the offering. It has since risen but is still 19.25% below the original price of $0.4.

The offering came just two months after the announcement of a share purchase agreement with an institutional investor to the tune of $41 million CAD. 

Despite the additional capital, the company is not necessarily in a great position right now. Net loss for the reported quarter was $14.5 million, meaning that the full utilization of the share purchase agreement will only fund the company for about another year. 

In the previous quarter, Cybin had cut its burn rate by nearly $4 million compared to 2022. However, net loss was up nearly $1 million in the reported quarter compared to the previous one, despite having cut expenses by about $700k.

Recently, Cybin announced the development of its psychedelic facilitator program Embark. This gives the company prospects of revenue growth sooner than would have been possible had they continued to focus solely on drug development. However, little is known about the project and when it might start producing revenue. 

The company is close to finishing up the phase 2 trial of its deuterated psilocybin drug CYB003. In the best-case scenario, Cybin will need capital for around 7 more years before this lead candidate can make it to market. 

It is unclear what the company’s plan is to obtain the additional capital that it needs to bring a drug to market. However, there will certainly need to be additional fundraising if Cybin is to make it through next year. 

The company has three promising drugs in its pipeline, so there could potentially be an acquisition in the future. One thing is for sure, Cybin’s current pathway isn’t one with a high probability of profitability. 

In the current economic climate, it is no longer enough to offer hopeful potential to investors. Many companies are struggling to stay afloat, which is causing a consolidation of the psychedelic sector. 

Cybin will have to make some big moves by the end of the financial year in order to stay relevant. The recent dilutive financing has already upset investors, and it will be interesting to see how the company approaches fundraising going forward. 

Read More