Skye Bioscience finalizes up to $22 million equity line with Redmile affiliate

Skye Bioscience, Inc. said that on August 21, 2026, it entered into a Securities Purchase Agreement with Redmile Biopharma Investments III, L.P., an affiliate of Redmile Group, LLC, establishing an equity line of credit (ELOC) tied to the company's planned acquisition of Redx Pharma Limited. Under the agreement, the buyer will be obligated to purchase common and, if applicable, non-voting common shares from the company for an aggregate purchase price of up to $22,000,000, an amount that will be reduced depending on how much is raised in a related PIPE financing, and that could fall to zero if that PIPE financing reaches $125,000,000.¹

Sales of ELOC shares will occur over a period beginning on a commencement date and ending on the third anniversary of the closing date of the related PIPE agreement, with purchases capped at $2,000,000 per calendar month and priced at the lesser of the PIPE price or market price, subject to a floor of a 10% discount to the PIPE price.¹

Skye also agreed to issue Redmile a warrant for shares worth $5,000,000 divided by the PIPE price, exercisable starting January 1, 2027 through January 1, 2030, at a price no lower than 90% of the PIPE price.¹ Warrant exercises are subject to a 9.99% beneficial ownership cap, above which shares would be issued as non-voting common stock instead.¹

The total ELOC shares issuable are capped at 19.99% of Skye's outstanding common stock unless stockholder approval is obtained, and Redmile's beneficial ownership under the facility is separately capped at 9.99%.¹

Skye also signed a registration rights agreement requiring it to file a resale registration statement with the SEC within 10 business days of the PIPE closing date.¹