News provided by Diamond Therapeutics Inc. Jan 07, 2021, 08:00 ET

TORONTO, Jan. 7, 2021 /CNW/ - Emerging psychedelic drug development company Diamond  Therapeutics has received new investment from the Ontario Brain  Institute (OBI), a not-for-profit organization that accelerates  discovery and innovation, benefiting both patients and the economy. 

An early believer in Diamond's precision, low-dose approach to  psychedelic therapies, OBI provided the company with funding in 2019.  Now, OBI has more than doubled its investment. Proceeds will support a  clinical trial of low-dose psilocybin intended to begin in early 2021,  pending Health Canada approval. The investment is in the form of a  convertible debenture.

"There's an unmet need for the next generation of drugs in the mental health space," says Tom Mikkelsen, President & Scientific Director of OBI.

"By furthering our investment in Diamond through the NERD (Neurotech  Early Research & Development) program, OBI will help improve the  evidence base related to low-dose psilocybin. We hope this investment  will lead to more accessible treatment options for people living with  anxiety and other mental health disorders," he adds.

"We are very grateful for this follow-on support," says Judith Blumstock,  CEO and Founder of Diamond. "Initial funding from OBI subsidized  compelling foundational research into precision, low-dose therapies, and  OBI's continued support will help advance our work to the next level."

OBI's first backing helped fund several animal studies exploring the behavioural effects of low-dose psilocybin. 

Data from Diamond's early research rallied investors to an oversubscribed $2.8 million seed round in spring 2020.

Following its planned Phase 1 clinical trial of low-dose psilocybin  in 2021, Diamond intends to conduct clinical studies in anxiety  disorders, which represent the most prevalent form of mental illness. 

"OBI's backing will further our pursuit of accessible, low-dose,  non-hallucinogenic therapies," says Blumstock. "We are working to  deliver solutions that are safer and more effective, and can provide  patients with an ideal therapeutic for the conditions affecting their  mental health." 

About Diamond 
Diamond Therapeutics is a psychedelic drug development company based in Toronto.  Our mission is to develop new and better therapies for mental health  conditions by unlocking the promise of psychedelic compounds. Diamond's  focus is developing and commercializing sub-perceptual,  non-hallucinogenic treatments that hold potential for use across a broad  patient cohort — maximizing the positive impact better drugs can have  on the global mental health crisis. To learn more about Diamond, visit  us at www.diamondthera.com.

About Ontario Brain Institute
The Ontario Brain  Institute is a not-for-profit organization that accelerates discovery  and innovation, benefiting both patients and the economy. Our  collaborative 'team science' approach promotes brain research,  commercialization and care by connecting researchers, clinicians,  industry, patients, and their advocates to improve the lives of those  living with brain disorders. Welcome to Brain Central. Visit www.braininstitute.ca for more information. Follow us on Twitter (@OntarioBrain). Funding provided, in part, by the Government of Ontario.

SOURCE Diamond Therapeutics Inc.

For further information: Rebecca Brown, rebecca@diamondthera.com