Toronto-based digital mental health treatment startup MindBeacon has priced its initial public offering (IPO), setting the common shares of the company at $8 per share for aggregate gross proceeds of $65 million.
The offering includes 8,125,000 common shares of MindBeacon at $8 per share and a concurrent secondary offering for underwriterss, which, if the over-allotment option is exercised, is expected to bring in approximately $10 million.
MindBeacon offers a mental health treatment platform focused on Cognitive Behavioural Therapy (CBT).
The TSX has been approved the listing of MindBeacon, which began trading Friday under the symbol ‘MBCN.’ The offering is expected to close on December 23.
The announcement of the pricing at $65 million is a 30 percent increase from MindBeacon’s original target of $50 million, with shares between $7 to $8. According to The Globe and Mail, the company and its underwriters increased the target size of the offering twice this week before settling on the current pricing.
MindBeacon was founded in 2015 and first introduced its mental health treatment platform, Beacon, in 2016 as an in-clinic solution to enhance delivery and measurement of Cognitive Behavioural Therapy (CBT), a psycho-social method that aims to improve mental health. Beacon launched in 2017 as a fully digital experience, providing treatment through digitally-delivered CBT with the one-on-one support of a dedicated therapist.
MindBeacon previously raised $38 million in Series A capital from a group of investors that included Green Shield Canada, Manulife, and Telus Ventures. Telus is among the selling shareholders for the IPO.
In October, MindBeacon was promised $4 million in a repayable contribution from FedDev Ontario through its Business Scale Up and Productivity stream. The investment was set to be used to scale MindBeacon’s digital and virtual therapy platforms and expand into global markets.
TD Securities and Credit Suisse Securities are leading the offering, with Bloom Burton Securities Inc., Canaccord Genuity Group, Beacon Securities Limited and Echelon Wealth Partners Inc. also part of the underwriting syndicate.
MindBeacon is looking to use the capital raised from the IPO to expand its product offerings, with sites set on the United States market. It is also looking to grow its sales and marketing team, and increase its data analytics and AI capabilities.