09:14 AM EDT, 09/19/2025 (MT Newswires) -- Clearmind Medicine ( CMND ) said Friday it signed a securities purchase agreement with institutional investors that allows the company to issue up to $10 million in convertible notes.

The company said it issued initial notes with principal amount of $555,556 for $500,000 at closing and expects to issue an additional $1.94 million in notes for $1.75 million once a registration statement with the US Securities and Exchange Commission becomes effective.

Clearmind Medicine ( CMND ) said it may request up to $7.5 million more in quarterly tranches of $2.5 million each.

Each note will be sold at 90% of principal amount, carry an annual interest of 4%, rising to 14% in case of default, and will be repayable in 10 monthly installments starting 18 months after issuance, Clearmind Medicine ( CMND ) said. The notes are convertible into common shares at a variable price not below $0.20, the company added.

The company also said it plans to use the net proceeds for working capital, general purposes, and potential acquisitions tied to strategic opportunities.

The company's shares were up more than 22% in recent Friday premarket activity.