Mr. Alex Vasilkevich reports

BRIGHT MINDS BIOSCIENCES CLOSES US$35 MILLION NON-BROKERED PRIVATE PLACEMENT

Bright Minds Biosciences Inc., further to its news release of Oct. 18, 2024, has closed a non-brokered private placement of 1,612,902 common shares in the capital of the company at a price of $21.70 (U.S.) per share for aggregate gross proceeds of $35-million (U.S.).

The offering included participation from Cormorant Asset Management, RA Capital Management, Perceptive Advisors, Janus Henderson Investors, Vivo Capital, Acuta Capital Partners, Schonfeld Strategic Advisors and other health care investors. The company intends to use the aggregate gross proceeds from the offering for research and development related to its drug development programs, and general working capital.

Additionally, the offering included participation from certain insiders of the company, including Jeremy Fryzuk, a director of the company, and Cormorant Asset Management, a holder of more than 10 per cent of the company's issued and outstanding securities. The insiders subscribed for an aggregate of 188,940 sharers for aggregate gross proceeds of $4,099,998 (U.S.). The issuance of shares to the insiders constitutes a related party transaction as defined in Multilateral Instrument 61-101, Protection of Minority Securityholders in Special Transactions. The company is relying on the exemption from the valuation requirement and minority approval pursuant to subsection 5.5(a) and 5.7(a) of MI 61-101, respectively, for the issuance of shares, as the shares do not represent more than 25 per cent of the company's market capitalization, as determined in accordance with MI 61-101.

All securities issued in connection with the offering are subject to a statutory hold period of four months and one day following the date of issuance in accordance with applicable Canadian securities laws. No finders' fees were paid in connection with the offering.

The company intends to use its reasonable commercial efforts to file a registration statement with the U.S. Securities and Exchange Commission after closing to register the shares for resale under the U.S. Securities Act.

About Bright Minds Biosciences Inc.

Bright Minds Biosciences is a biotechnology company developing innovative treatments for patients with neurological and psychiatric disorders. Its pipeline includes novel compounds targeting key receptors in the brain to address conditions with high unmet medical need, including epilepsy, depression and other CNS disorders. Bright Minds is focused on delivering breakthrough therapies that can transform patients' lives. Bright Minds Biosciences has developed a unique platform of highly selective serotonergic agonists exhibiting selectivity at different serotonergic receptors. This has provided a rich portfolio of NCE programs within neurology and psychiatry.

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