/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, May 23, 2017 /CNW/ - InMed Pharmaceuticals, Inc. ("InMed" or the "Company") (CSE: IN; OTCQB: IMLFF), a biopharmaceutical company specializing in the research and development of novel, cannabinoid-based drug therapies, is pleased to announce that, in connection with its proposed public offering announced on April 21, 2017, it has entered into an underwriting agreement (the "Underwriting Agreement") with a syndicate of underwriters led by Canaccord Genuity Corp. and including Eight Capital along with Roth Capital Partners, LLC serving as placement agent for sales of Units in the United States (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on an underwritten basis, 11,120,000 Units of the Company (the "Units") at a price of $0.45 per Unit (the "Offering Price"), for aggregate gross proceeds of $5,000,400 (the "Offering"). Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will have an exercise price of $0.65 per common share and will be exercisable for a period of 24 months following the closing date. The Warrants will only be exercisable on a net cashless basis on the five-day volume-weighted average trading price of the common shares of the Company on the Canadian Securities Exchange ending on the date immediately preceding the date of exercise.

In addition, the Company has granted the Underwriters an option (the "Over-Allotment Option"), to purchase up to 1,668,000 additional Units at the Offering Price for a period of up to 30 days after the closing date of the Offering. In the event that the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering to the Company will be $5,754,600.

InMed intends to use the net proceeds from the Offering for the following purposes: to support the continued research and development of INM-750 for the treatment of Epidermolysis Bullosa; to further develop the Company's other research and development programs including its biosynthesis assets; for general and administrative expenses of the Company; and to fund working capital.

Closing of the Offering is expected to occur on or about May 30, 2017, subject to the receipt of all necessary regulatory approvals and other customary closing conditions for transactions of this nature.

InMed intends to file a final short form prospectus for the Offering (the "Final Prospectus") on or about May 24, 2017 in the provinces of British Columbia, Alberta and Ontario. A copy of the Final Prospectus and the Underwriting Agreement will be available for review under the Company's profile on SEDAR at www.sedar.com.

This news release shall not constitute an offer to sell or a solicitation of any offer to buy any of the securities being offered nor shall there be any sale of any of the securities being offered in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and such securities may not be offered or sold within the United States absent registration under the U.S. Securities Act or an applicable exemption from the registration requirements thereunder.

About InMed

InMed is a preclinical stage biopharmaceutical company specializing in the research and development of novel, cannabinoid-based prescription drug therapies utilizing novel drug delivery systems. InMed conducts research, discovery, preclinical, clinical, regulatory, manufacturing and commercial development activities for its product candidates. InMed's proprietary bioinformatics database assessment tool, the biosynthesis manufacturing process and its drug development programs are the fundamental value drivers of the Company. For more information, visit www.inmedpharma.com.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is based on management's current expectations and beliefs and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking information in this news release includes statements about: the use of net proceeds from the Offering; the expected closing date of the Offering; receiving all necessary regulatory approvals for the Offering; the filing of the Final Prospectus and Underwriting Agreement on SEDAR; and the expected fundamental value drivers of the Company.

With respect to the forward-looking information contained in this news release, InMed has made numerous assumptions regarding, among other things: receipt of all necessary regulatory approvals for the Offering; successful completion of the Offering; and continued economic and market stability. While InMed considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies.

Additionally, there are known and unknown risk factors which could cause InMed's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: InMed may not complete the Offering at the time expected, or at all; InMed may not receive all necessary regulatory approvals for the Offering; InMed may not use net proceeds received from the Offering as currently contemplated and InMed's proprietary platform technology, product pipeline and drug development programs may not return their expected level of value.

A more complete discussion of the risks and uncertainties facing InMed is disclosed in InMed's Annual Information Form and other continuous disclosure filed with Canadian securities regulatory authorities on SEDAR at www.sedar.com. In addition, readers should review the disclosure under the heading "Risk Factors" in the Final Prospectus, once filed. All forward-looking information herein is qualified in its entirety by this cautionary statement, and InMed disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE InMed Pharmaceuticals Inc.

For further information: InMed Pharmaceuticals Inc., Chris Bogart, SVP, Investor Relations and Corporate Strategy, T: 604.669.7207, E: [email protected]

Related Links

www.imedpharma.com

