Well, look who’s back in the spotlight.

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After months of slogging through a bear market hangover, Cybin Inc. (NYSE: CYBN) just reminded the market that sometimes, the trip isn’t over, even when you think it is. 

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Over the past few days, Cybin shares have jumped on the back of something Wall Street actually likes to see from a clinical-stage biotech: cash, conviction, and clarity.

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Let’s break it down.

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$175 million in play

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The big catalyst came earlier this week, when Cybin announced a $175 million registered direct offering.  It’s actually a pretty sizable financing for the psychedelics sector.  And quite frankly, it represents a serious statement: institutional money is bullish. 

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With this infusion of cash, Cybin plans to pay off its debt, advance its Phase 3-ready CYB003 program (a deuterated psilocybin analog for depression), and push other pipeline compounds forward. Translation: they’re not running out of runway anytime soon.

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Yes, dilution stings. But make no mistake: the alternative was far worse. In the current biotech market, liquidity equals survival. And Cybin just bought itself several years of breathing room.

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Technically speaking

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It’s also worth noting the chart …

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After about a month or so of drifting near its record lows, Cybin’s stock started flashing technical buy signals:  volume spikes, RSI confirmation, and short-covering momentum. Traders noticed.

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Combine that technical setup with a financing that clears balance-sheet risk, and you’ve got the perfect cocktail for a short-term pop.

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To be sure, there’s a subtle shift happening in the mental-health biotech space. Investors are starting to realize that psychedelic-assisted therapies aren’t just a curiosity — they’re a multibillion-dollar market in waiting.

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In fact, just a few months ago, a psychedelics-based startup Gilgamesh Pharma, sold its lead program  - the novel psychedelic Bretisilocin - to AbbVie (NYSE: ABBV) for $1.2 billion.  That’s billion - with a “B.”  And we expect to see more of this action in the psychedelics space in the coming months and years.

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Of course, Gilgamesh Pharma isn’t a public company, but there are plenty of public psychedelics companies worth keeping your eye on.  These include, but are not limited to …

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• Compass Pathways (NASDAQ: CMPS)
• atai Life Sciences (NASDAQ: ATAI)
• MindMed (NASDAQ: MNMD)
• GH Research (NASDAQ: GHRS)
• PharmaTher Holdings (OTCBB: PHRRF)

While the market seems to be embracing Cybin’s recent offering, I wouldn’t be quick to run out and buy it right now.  It’ll likely take a few weeks for the market to fully digest the news, and of course, there will be long-term holders looking to sell at least a portion of their holdings on this big run.  That being said, long-term, Cybin is no slouch, and might be worth picking up on any significant sell-off.  Certainly we’ll keep you posed. 

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