Delix Therapeutics Closes $30 Million Convertible Note Financing, Enters $10 Million Strategic Credit Facility Option in Partnership with Comerica Bank
Over $100M total capital raised in 2021, providing operational and strategic flexibility to execute mission to broaden patient access to innovative, safe, and efficacious non-hallucinogenic psychoplastogens for the treatment of multiple mental health disorders
BOSTON, Jan. 10, 2022-- Delix Therapeutics (the "Company"), a neuroscience company developing novel disease-modifying therapeutics for psychiatric and neurological conditions, today announced that it closed over $30 million in a convertible note financing. Primarily led by existing investors, funding was also provided by select new long-term partners. Additionally, Delix has secured a $10 million Strategic Credit Facility in partnership with Comerica Bank’s Technology & Life Sciences practice, a leading venture debt partner to sponsor-backed businesses. These funds will enhance Delix’s ability to grow its drug development program, pipeline, and platform of novel neuroplasticity-promoting therapeutics known as psychoplastogens; continue to expand its world-class team; and offer the flexibility to execute on additional strategic opportunities in 2022 that support Delix’s mission to become a leading neuroscience company.
“We are fortunate to have built a tremendous investor-syndicate in our $70 million Series A financing round in Q3 2021, while achieving continued growth and operational progress throughout the year. This latest capital raise represents the strength of investor interest, partnership, and support for Delix’s approach to drug development,” said Delix CEO Mark Rus.
“Delix has developed a wide-ranging library of novel non-hallucinogenic psychoplastogens, backed by a growing body of scientific data and evidence that demonstrate these compounds’ potentially disease-modifying effects on a variety of brain disorders. We plan to leverage the funds from our growing investor network, and partnership with Comerica, to accelerate the transformation of our scientific discoveries into FDA-approved take-home medicines for a broad set of patients suffering from mental illness or other neurological diseases,” added Rus.
With over thirty years of venture lending experience, Comerica’s Technology & Life Science practice provides customized commercial banking and debt solutions to support rapid business growth. Senior Vice President Bryan Kana, who leads Comerica’s TLS practice in Boston, and Assistant Vice President Lee Eustis underwrote the credit facility on behalf of the bank.
“We focus our life science practice on exceptional management teams, deep scientific platforms, and top-tier equity partners,” said Kana. “Mark and the team at Delix excel across all categories. We’re thrilled to support their growth and the promise they carry for patients fighting neurological diseases and treatment-resistant mental illness.”
In September 2021, Delix Therapeutics closed a $70 million Series A financing round to fund the advancement of its two lead candidates through Phase 1 clinical trials, further expand its drug discovery platform, and rapidly grow its world-class team.
About Delix Therapeutics
Delix Therapeutics is a neuroscience company focused on harnessing the power of psychoplastogens—novel neuroplasticity-promoting therapeutics—to better treat mental health disorders at scale. The company's compounds are easily manufactured small molecules capable of rapidly inducing structural and functional neural changes in targeted areas of the brain. Many of these molecules are inspired by psychedelic compounds and preserve their efficacy-promoting mechanisms while avoiding their hallucinogenic properties and other safety liabilities. Delix is rapidly advancing these compounds through preclinical and clinical development to bring patients FDA-approved, take-home medicines that will serve several unmet needs. Headquartered in Massachusetts, Delix is building a world-class biotechnology company by combining an experienced team with innovative treatment strategies and scientific rigor to address the significant and growing mental health challenges impacting society.
About Comerica Bank Technology and Life Sciences Division
Comerica Bank’s Technology and Life Sciences Division (TLS) remains one of the nation’s leading technology banking practices, specializing in providing comprehensive banking solutions to support technology and bioscience companies at any stage of their life cycle. Veteran bankers provide credit and financial services and products to young, growing, venture-backed technology and life science companies, as well as their mature counterparts. The TLS Division serves all major U.S. and Canadian technology centers from coast-to-coast. Comerica Bank is a subsidiary of Comerica Incorporated (NYSE: CMA), a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Commercial Bank, The Retail Bank, and Wealth Management. Comerica reported total assets of $94.5 billion at Sept. 30, 2021.
Retsina Meyer, PhD
KCSA Strategic Communications