Document:

Exhibit 4.2

 

Mind Medicine (MindMed) Inc.

 

(Formerly Broadway Gold Mining Ltd.)

 

Consolidated Financial Statements

 

(Expressed in United States Dollars)

 

For the Year Ended December 31, 2020

 

(with comparatives
for the period from May 30, 2019 

(date of Incorporation) to December 31, 2019)

 

    

     

    

 

 

 

INDEPENDENT AUDITOR'S REPORT

 

To the Shareholders of Mind Medicine (MindMed)
Inc. (formerly Broadway Gold Mining Ltd.)

 

Opinion

 

We have audited the consolidated
financial statements of Mind Medicine (MindMed) Inc. (formerly Broadway Gold Mining Ltd.), (the "Company"), which comprise the
consolidated statements of financial position as at December 31, 2020 and 2019 and the consolidated statement of loss and comprehensive
loss, changes in shareholders' equity, and cash flows for the year ended December 31, 2020 and for the period May 30, 2019 (date of incorporation)
to December 31, 2019, and notes to the consolidated financial statements, including a summary of significant accounting policies.

 

In our opinion, the accompanying
consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as at December
31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the year and period then ended in accordance
with International Financial Reporting Standards.

 

Basis for Opinion

 

We conducted our audit in accordance
with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in
accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, and we have
fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.

 

Other Information

 

Management is responsible for
the other information. The other information comprises the Management's Discussion and Analysis, but does not include the consolidated
financial statements and our report thereon.

 

Our opinion on the consolidated
financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

 

In connection with our audit
of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated.

 

We obtained the Management Discussion
and Analysis prior to the date of this auditor's report. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

 

Responsibilities of Management
and Those Charged with Governance for the Consolidated Financial Statements

 

Management is responsible for
the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards,
and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or error.

 

 

    1 

     

    

 

In preparing the consolidated
financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to do so.

 

Those charged with governance
are responsible for overseeing the Company's financial reporting process.

 

Auditor's Responsibilities for the
Audit of the Consolidated Financial Statements

 

Our objectives are to obtain reasonable
assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

 

As part of an audit in accordance
with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:

 

		•	Identify and assess the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.

 

		•	Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control.

 

		•	Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures made by management.

 

		•	Conclude on the appropriateness of management's use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause the Company to cease to continue as a going concern.

 

		•	Evaluate the overall presentation, structure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.

 

We communicate with those charged
with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.

 

We also provide those charged
with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with
them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

 

The engagement partner on the audit resulting
in this independent auditor's report is Mark Jakovcic.

 

/s/ RSM Canada LLP

 

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Ontario

March 29, 2021

 

     

     

    

 

Mind Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.) 

Consolidated Statements of Financial Position

(Expressed in thousands of United States Dollars)

As at December 31, 2020

 

	 	 	December 31,
 2020	 	 	December 31,
 2019	 
	Assets	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Current	 	 	 	 	 	 	 	 
	Cash	 	$	80,094	 	 	$	3,017	 
	Funds held in trust (Note 5)	 	 	-	 	 	 	3,686	 
	Prepaid and other current assets	 	 	875	 	 	 	34	 
	 	 	 	 	 	 	 	 	 
	 	 	 	80,969	 	 	 	6,737	 
	Non-current assets	 	 	 	 	 	 	 	 
	Intangible assets, net (Note 6)	 	 	4,675	 	 	 	5,225	 
	 	 	 	 	 	 	 	 	 
	Total assets	 	$	85,644	 	 	$	11,962	 
	 	 	 	 	 	 	 	 	 
	Liabilities	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Current	 	 	 	 	 	 	 	 
	Accounts payable and accrued liabilities	 	$	2,377	 	 	$	1,961	 
	 	 	 	 	 	 	 	 	 
	Total liabilities	 	 	2,377	 	 	 	1,961	 
	 	 	 	 	 	 	 	 	 
	Shareholders' equity	 	 	 	 	 	 	 	 
	Share capital (Note 7)	 	 	105,604	 	 	 	15,322	 
	Warrants (Note 8)	 	 	15,871	 	 	 	153	 
	Contributed surplus	 	 	2,321	 	 	 	-	 
	Accumulated other comprehensive income	 	 	284	 	 	 	-	 
	Deficit	 	 	(40,813	)	 	 	(5,474	)
	 	 	 	 	 	 	 	 	 
	Total shareholders' equity	 	 	83,267	 	 	 	10,001	 
	 	 	 	 	 	 	 	 	 
	Total liabilities and shareholders' equity	 	$	85,644	 	 	$	11,962	 

 

Commitments (Note 15)

 

Subsequent Events (Note 19)

 

	Approved by the Board	 	/s/ Jamon Rahn	 	/s/ Brigid Makes
	 	 	Director	 	Director

 

The
accompanying notes are an integral part of these consolidated financial statements

 

    1

     

    

 

Mind Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.)

Consolidated Statements of Loss and Comprehensive Loss

(Expressed in thousands of United States Dollars)

 

	 	 	For the Year
 Ended
 December 31,

 2020	 	 	For the Period

 from May 30,

 2019 (Date of

 Incorporation) to

 December 31,

 2019	 
	Expenses	 	 	 	 	 	 	 	 
	Research and development (Note 13)	 	$	15,387	 	 	$	2,049	 
	General and administrative (Note 14)	 	 	7,690	 	 	 	3,105	 
	Share-based payments (Notes 7(v) and 9)	 	 	8,810	 	 	 	73	 
	Amortization (Note 6)	 	 	550	 	 	 	275	 
	 	 	 	 	 	 	 	 	 
	Loss before the undernoted items	 	 	(32,437	)	 	 	(5,502	)
	 	 	 	 	 	 	 	 	 
	Interest income	 	 	13	 	 	 	12	 
	Interest expense	 	 	-	 	 	 	(2	)
	Foreign exchange gain	 	 	130	 	 	 	18	 
	Loss on revaluation of derivative liability (Note 11)	 	 	(873	)	 	 	-	 
	Listing expense (Note 4)	 	 	(2,172	)	 	 	-	 
	 	 	 	 	 	 	 	 	 
	Loss before income taxes	 	 	(35,339	)	 	 	(5,474	)
	Income taxes (Note 10)	 	 	-	 	 	 	-	 
	Net loss for the period	 	 	(35,339	)	 	 	(5,474	)
	Gain on foreign currency translation	 	 	284	 	 	 	-	 
	 	 	 	 	 	 	 	 	 
	Net loss and comprehensive loss for the period	 	$	(35,055	)	 	$	(5,474	)
	 	 	 	 	 	 	 	 	 
	Basic and diluted loss per common share	 	$	(0.10	)	 	$	(0.05	)
	 	 	 	 	 	 	 	 	 
	Weighted average number of common shares outstanding	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Basic and diluted (Note 12)	 	 	361,135,160	 	 	 	103,937,872	 

 

The accompanying notes are an integral part of these consolidated financial statements

 

    2

     

    

 

Consolidated Statements of Changes in Shareholders’ Equity

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

	 	 	Subordinate 

Voting

 Shares	 	 	Multiple

 Voting 

Shares	 	 	Share 

Capital

 Amount	 	 	Warrants	 	 	Contributed 

Surplus	 	 	Accumulated

 OCI	 	 	Deficit	 	 	Total	 
	Balance, May 30, 2019	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Issuance of share capital net of share issuance costs (Note 7 and 8)	 	 	49,860,200	 	 	 	-	 	 	 	15,322	 	 	 	153	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	15,475	 
	Net loss and Comprehensive loss	 	 	 	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(5,474	)	 	 	(5,474	)
	Balance, December 31, 2019	 	 	49,860,200	 	 	 	-	 	 	$	15,322	 	 	$	153	 	 	$	-	 	 	$	-	 	 	$	(5,474	)	 	$	10,001	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Consolidation of shares (Notes 4 and 7(xi)) 1	 	 	6,232,525	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(5,474	)	 	 	(5,474	)
	Shares and warrants deemed issued related to the reverse takeover transaction (Notes 4 and 7(xii))	 	 	189,923,751	 	 	 	550,000	 	 	 	19,603	 	 	 	635	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	35,713	 
	Issuance of share capital net of share issuance costs (Notes 7(xiii)(xiv)(xv))	 	 	70,505,350	 	 	 	-	 	 	 	30,297	 	 	 	22,189	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	52,486	 
	Share based payments (Notes 7(v)(xvi))	 	 	5,489,740	 	 	 	-	 	 	 	5,819	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	5,819	 
	Warrants exercised (Note 8)	 	 	31,420,721	 	 	 	-	 	 	 	33,245	 	 	 	(8,784	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	24,461	 
	Options exercised	 	 	2,563,073	 	 	 	-	 	 	 	1,318	 	 	 	-	 	 	 	(670	)	 	 	-	 	 	 	-	 	 	 	648	 
	Stock option expense (Note 9)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	 	 	 	 	2,991	 	 	 	-	 	 	 	-	 	 	 	2,991	 
	Reclass of financing warrants to equity (Note 11)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,678	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,678	 
	Net Loss and Comprehensive loss	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	284	 	 	 	(35,339	)	 	 	(35,055	)
	Balance, December 31, 2020	 	 	306,135,160	 	 	 	550,000	 	 	$	105,604	 	 	$	15,871	 	 	$	2,321	 	 	$	284	 	 	$	(40,813	)	 	$	83,267	 

 

1  Number of shares reflect the retrospective
application of the 8:1 share consolidation.

 

The accompanying notes are an integral part of these consolidated financial statements

 

    3

     

    

 

Consolidated Statements of Cash Flows

(Expressed in thousands of United States Dollars)

 

	 	 	For the Year
 Ended
 December 31, 

2020	 	 	For the period

 May 30, 2019

 (date of

 incorporation)

 to December 31, 

2019	 
	Operating activities	 	 	 	 	 	 	 	 
	Net loss	 	$	(35,339	)	 	$	(5,474	)
	Items not affecting cash	 	 	 	 	 	 	 	 
	Share-based payments (Notes 7(v)(xvi) and 9)	 	 	8,810	 	 	 	73	 
	Listing expense - share consideration (Note 4)	 	 	1,539	 	 	 	-	 
	Amortization of intangible assets (Note 6)	 	 	550	 	 	 	275	 
	Loss on revaluation of derivative liability (Note 11)	 	 	873	 	 	 	-	 
	Foreign exchange	 	 	(189	)	 	 	(248	)
	Changes in non-cash operating assets and liabilities	 	 	 	 	 	 	 	 
	Prepaid and other current assets	 	 	(828	)	 	 	(34	)
	Accounts receivable	 	 	(13	)	 	 	-	 
	Accounts payable and accrued liabilities	 	 	417	 	 	 	1,961	 
	 	 	 	 	 	 	 	 	 
	Net cash used in operating activities	 	 	(24,179	)	 	 	(3,347	)
	 	 	 	 	 	 	 	 	 
	Financing activities	 	 	 	 	 	 	 	 
	Proceeds from issuance of share capital, net of issuance costs (Note
    8)	 	 	72,273	 	 	 	9,902	 
	Proceeds from exercise of warrants (Note 8)	 	 	24,460	 	 	 	-	 
	Proceeds from exercise of options (Note 9)	 	 	648	 	 	 	-	 
	 	 	 	 	 	 	 	 	 
	Net cash provided by financing activities	 	 	97,381	 	 	 	9,902	 
	 	 	 	 	 	 	 	 	 
	Increase in cash	 	 	73,202	 	 	 	6,455	 
	 	 	 	 	 	 	 	 	 
	Foreign exchange impact on cash	 	 	189	 	 	 	248	 
	 	 	 	 	 	 	 	 	 
	Cash, beginning of period	 	 	6,703	 	 	 	-	 
	 	 	 	 	 	 	 	 	 
	Cash, end of period	 	$	80,094	 	 	$	6,703	 
	 	 	 	 	 	 	 	 	 
	Supplemental cash flow Information	 	 	 	 	 	 	 	 
	Cash	 	$	80,094	 	 	$	3,017	 
	Funds held in trust (Note 5)	 	 	-	 	 	 	3,686	 
	 	 	 	 	 	 	 	 	 
	Cash and funds held in trust	 	$	80,094	 	 	$	6,703	 
	 	 	 	 	 	 	 	 	 
	Transfer of intangible assets in exchange for issuance of 55,000,000 Class
    A common shares (Note 7)	 	$	-	 	 	$	5,500	 

 

The accompanying notes are an integral part of these consolidated financial statements

 

    4

     

    

 

 

Mind Medicine (MindMed)
Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For the Year Ended December
31, 2020

 

		1.	NATURE OF OPERATIONS 

 

Mind
Medicine (MindMed) Inc. (formerly Broadway Gold Mining Ltd.) (the “Company” or “MindMed”) is incorporated under
the laws of the Province of British Columbia. Its wholly owned subsidiaries, Mind Medicine, Inc. (“MindMed US”), MindMed Pty
Ltd. and MindMed GmbH are incorporated in Delaware, Australia and Switzerland respectively. Prior to February 27, 2020, the Company’s
operations were conducted through MindMed US.

 

The
Company’s head office and address of its registered and records office is 1166 Alberni Street, Suite 1604, Vancouver, British Columbia
V6E 3Z3. On February 27, 2020, MindMed completed a reverse takeover transaction with Broadway Gold Mining Ltd. (“Broadway”)
by way of a plan of arrangement which resulted in the Company becoming the parent company of MindMed US. MindMed US is deemed to be the
acquirer in the reverse takeover transaction. As a result, the consolidated statements of financial position are presented as a continuance
of MindMed US and the comparative figures presented are those of MindMed US. See Note 4 for details. 

 

MindMed is a neuro-pharmaceutical
drug development platform advancing medicines based on psychedelic substances through rigorous science and clinical trials. MindMed’s
mission is to discover, develop and deploy psychedelic inspired medicines and experiential therapies that alleviate suffering and
improve health. The Company seeks to prove the safety and efficacy of psychedelic-based substances as disruptive technologies and solutions
for a continuum of mental illnesses and high unmet medical needs through its unique drug development platform.

 

The
consolidated financial statements were prepared on a going concern basis, which assumes that the Company will continue its operations
for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of
business.

 

The
outbreak of the novel strain of coronavirus, specifically identified as “COVID-19”, has resulted in governments worldwide
enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed
quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global
equity markets have experienced significant volatility and weakness. Depending on the length and severity of the pandemic, COVID-19 could
impact the Corporation’s operations, could cause delays relating to approval from the FDA and equivalent organizations in other
countries, could postpone research activities, could impair the Corporation’s ability to raise funds depending on COVID-19’s
effect on capital markets, and could affect logistics and the Corporation’s ability to move materials in a timely manner to clinical
trial sites or production of GMP materials (which availability of GMP materials may also impact clinical trial timelines).

 

To
the knowledge of the Company’s management as of the date hereof, COVID-19 does not present, at this time, any specific known impacts
to the Company in relation to the Corporation’s business objectives or disclosed milestones related thereto. The Company relies
on third parties to conduct and monitor the Company’s pre-clinical studies and clinical trials. However, to the knowledge of Company’s
management, the ability of these third parties to conduct and monitor pre-clinical studies and clinical trials has not been and is not
anticipated to be impacted by COVID-19. The Company is not currently aware of any changes in laws, regulations or guidelines, including
tax and accounting requirements, arising from COVID-19 which would be reasonably anticipated to materially affect the Company’s
business.

 

    5 

     

    

 

Mind Medicine (MindMed)
Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For the Year Ended December
31, 2020

 

		2.	BASIS OF PRESENTATION

 

Statement of Compliance

 

The consolidated financial statements
have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International
Accounting Standards Board (“IASB”), and the interpretations of the IFRS Interpretations Committee “IFRIC”, effective
for the Company’s reporting for the year ended December 31, 2020.

 

These
consolidated financial statements were approved for issuance by the Board of Directors on March
29, 2021.

 

Basis of Measurement 

 

These
consolidated financial statements have been prepared on the historical cost basis, except for certain financial assets and liabilities
measured at fair value as determined at each reporting period. 

 

Functional and Presentation Currency

 

These
consolidated financial statements are presented in United States dollars, which is the Company’s presentation currency. The functional
currency of the Company and it’s subsidiaries are as follows:

 

	Mind Medicine (MindMed) Inc.	Canadian dollar
	Mind Medicine, Inc. (US operating company)	US dollar
	MindMed Pty Ltd. (Australian subsidiary)	US dollar
	Mind Med Discover GmbH (Swiss subsidiary)	Swiss franc

 

The
Company and its subsidiaries assess their functional currency individually. The functional currency of each of the Company’s subsidiaries
is the currency of the primary economic environment in which each entity operates. Determination of functional currency involves certain
judgments to determine the primary economic environment and this is re-evaluated for each new entity or if conditions change. 

 

The
parent Company, Mind Medicine (MindMed) Inc., changed its functional currency from the US dollar (USD) to the Canadian dollar (CAD) effective
October 1, 2020. The Company acts as the financing company, raising funds to invest in projects, businesses and research and development.
The change in functional currency was triggered by the Company’s ability to raise significant capital within the Canadian markets
and in the Canadian currency. This was a significant change as before October 1st, the majority of the Company’s financing
had been raised in US dollars. It was also noted that the Company’s expenses are primarily denominated in Canadian dollars. In accordance
with IFRS, the change in functional currency has been applied on a prospective basis. An impact of the change in the Company’s functional
currency is the reclassification of financing warrants from a derivative liability to equity classification in the statements of financial
position (Note 11).

 

Use of Significant Estimates and
Assumptions

 

The preparation of financial statements
in conformity with IFRS requires management to make estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets and liabilities, revenue and expenses, related disclosures of contingent assets and liabilities. Actual results
could differ materially from these estimates and assumptions. The Company reviews its estimates and underlying assumptions on an ongoing
basis. Revisions are recognized in the period in which the estimates are revised and may impact future periods.

 

    6 

     

    

 

Mind Medicine (MindMed)
Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For the Year Ended December
31, 2020

 

		2.	BASIS OF PRESENTATION (Continued)

 

Use of Significant Estimates and
Assumptions (Continued)

 

Management has applied significant
estimates and assumptions to the following:

 

Useful life of intangible assets

 

The Company estimates the useful
lives of intangible assets from the date they are available for use in the manner intended by management and periodically reviews the
useful lives to reflect management’s intent about developing and commercializing the assets.

 

Impairment of long-lived assets

 

Long-lived assets are reviewed
for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the asset may not be recoverable.
For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable
cash flows (cash-generating units). The recoverable amount is the higher of an asset’s fair value less costs to sell and value in
use (being the present value of the expected future cash flows of the relevant asset or cash-generating unit). An impairment loss is recognized
for the amount by which the asset’s carrying amount exceeds its recoverable amount. Management evaluates impairment losses for potential
reversals when events or circumstances warrant such consideration.

 

Valuation of share-based compensation
and warrants 

 

Management measures the costs
for share-based compensation and warrants using market-based option valuation techniques. Assumptions are made and estimates are used
in applying the valuation techniques. These include estimating the future volatility of the share price, expected dividend yield, expected
risk-free interest rate, future employee turnover rates, future exercise behaviours and corporate performance. Such estimates and assumptions
are inherently uncertain. Changes in these assumptions affect the fair value estimates of share-based compensation and warrants.

 

Significant judgements and
estimates

 

Functional currency

 

The functional currency of the
Company and each of the Company’s subsidiaries is the currency of the primary economic environment in which the respective entity
operates. Such determination involves certain judgements to identify the primary economic environment. The Company reconsiders the functional
currency of an entity if there is a significant change in the events and/or conditions which determine the primary economic environment.
In the event of a change of functional currency, the Company reevaluates the classification of financial instruments. Upon the change
in the parent company’s functional currency during the year, the financing warrants, which were initially classified as a derivative
liability on the statement of financial position, were reassessed and reclassified as equity instruments at the fair value on the date
of the functional currency change.

 

Research and development

 

Management monitors the progress
of its research and development activities. Significant judgment is required to distinguish between the research and development phases.
Development costs are recognized as an asset when the following criteria are met: (i) technical feasibility; (ii) intention to complete
the project; (iii) the ability to generate future economic benefits; (iv) availability of technical and financial resources; (v) ability
to measure the expenditures reliably. Research costs are expensed as incurred.

 

    7 

     

    

 

Mind Medicine (MindMed)
Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For the Year Ended December
31, 2020

 

		3.	SIGNIFICANT ACCOUNTING POLICIES

 

The accounting policies set out below have been applied consistently
in these consolidated financial statements.

 

Foreign Currency 

 

Transactions
in foreign currencies are translated to the functional currency at the rate on the date of the transactions. Monetary assets and liabilities
denominated in foreign currencies are retranslated at the spot rate of exchange as at the reporting date. All differences are taken to
profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rate as at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated
using the exchange rate at the date when the fair value was determined.

 

Foreign Operations

 

The assets and liabilities of foreign
operations, including goodwill and fair value adjustments arising on acquisition, are translated to United States dollars at exchange
rates at the reporting date. The income and expenses of foreign operations are translated to United States dollars at exchange rates at
the dates of the transactions.

 

Foreign currency differences are
recognized in other comprehensive income in the cumulative translation account.

 

When a foreign operation is disposed
of, the relevant amount in the cumulative amount of foreign currency translation differences is transferred to profit or loss as part
of the profit or loss on disposal. On the partial disposal of a subsidiary that includes a foreign operation, the relevant proportion
of such cumulative amount is reattributed to non-controlling interest. In any other partial disposal of a foreign operation, the relevant
proportion is reclassified to profit or loss.

 

Foreign exchange gains or losses
arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely
to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are
recognized in other comprehensive income in the cumulative amount of foreign currency translation differences.

 

Subsidiaries

 

These consolidated financial statements
include the accounts of the Company and its wholly owned subsidiaries:

 

·   
Mind Medicine, Inc. (US operating company)

·   
MindMed Pty Ltd. (Australian subsidiary)

·   
Mind Med Discover GmbH (Swiss subsidiary)

 

The financial statements of subsidiaries
are included in the consolidated financial statements from the date that control commences until the date that control ceases. The accounting
policies of subsidiaries have been changed when necessary to align them with the policies adopted by the Company.

 

    8 

     

    

 

Mind Medicine (MindMed)
Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For
the Year Ended December 31, 2020

 

		3.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Transactions Eliminated on Consolidation

 

Intra-group balances and transactions,
and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.
Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

 

Cash 

 

Cash is deposited with financial institutions.
The Company has classified its cash at amortized cost.

 

Research and Development

 

Expenditures on research activities,
undertaken with the prospect of gaining new scientific or technical knowledge and understanding, are recognized in profit or loss as incurred.

 

Development activities involve a
plan or design for the production of new or substantially improved products and processes.

 

Development expenditures are capitalized
only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits
are probable, and the Company intends to complete development and has sufficient resources to complete development and to use or sell
the asset. Other development expenditures are expensed as incurred. No internal development costs have been capitalized to date.

 

Research and development expenses
include all direct and indirect operating expenses supporting the products and processes in development, including inventory of drug substance.

 

The costs incurred in establishing
and maintaining patents are expensed as incurred.

 

Intangible Assets 

 

Externally acquired intangible assets
are measured at cost less accumulated amortization and any accumulated impairment losses. The cost of intangible assets acquired through
asset acquisitions is their fair value at the acquisition date. These intangible assets are amortized on a straight-line basis over their
estimated useful lives and are tested for impairment whenever events or changes indicate that their carrying amount may not be recoverable.
Useful lives, residual values and amortization methods for these intangible assets with finite useful lives are reviewed at least annually.

 

Expenditures are capitalized only
when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures are recognized
in profit or loss as incurred.

 

The significant intangibles recognized
by the Company and their useful economic lives are as follows:

 

	Intangible assets	 	Useful life
	18-MC program	 	10 years

 

    9 

     

    

 

Mind Medicine (MindMed) Inc.
(Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For
the Year Ended December 31, 2020

 

		3.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Impairment of Non-financial Assets

 

The carrying amounts of the Company's
non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If such an indication
exists, the recoverable amount is estimated. The recoverable amount of an asset or a cash-generating unit is the greater of its value
in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset or cash-generating unit. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into
the smallest group of assets that generate cash inflows from continuing use that are largely independent of cash inflows of other assets
or cash-generating units. An impairment loss is recognized if the carrying amount of an asset or its related cash-generating unit exceeds
its estimated recoverable amount. Impairment losses for intangible assets are recognized in research and development expenses.

 

Impairment losses recognized in prior
periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortization, if no impairment loss had been recognized.

 

Share Issuance Costs

 

Professional, consulting, regulatory
fees and other costs that are directly attributable to the issuance of shares are charged to capital stock when the related shares are
issued, net of any tax effects. Transaction costs of abandoned equity transactions are recognized in the consolidated statement of loss
and comprehensive loss.

 

Share-based Payments

 

Where equity-settled share payments
are awarded to management, employees and consultants, the fair value of the equity instruments at the date of grant is charged to the
consolidated statements of loss and comprehensive loss. Where the terms and conditions are modified before they vest, any increase in
the fair value of the shares, measured immediately before and after the modification, is also charged to the consolidated statements of
loss and comprehensive loss.

 

Where equity instruments are granted
to non-employees, they are recorded at the fair value of the goods or services received unless that fair value cannot be estimated reliably
in which case they are measured at the fair value of the equity instruments granted. Amounts related to the issuance of shares are recorded
as reduction of share capital. If the fair value of the goods or services received cannot be estimated reliably, the goods or services
received, and the corresponding increase in equity are measured, indirectly, by reference to the fair value of the equity instruments
granted, measured at the date the entity obtains the goods or the counterparty renders the service.

 

Income Taxes 

 

Income tax on the profit or loss
for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it
relates to items recognized directly in equity, in which case it is recognized in equity.

 

    10 

     

    

 

Mind Medicine (MindMed)
Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For
the Year Ended December 31, 2020

  

		3.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Income Taxes (Continued)

 

Income tax on the profit or loss
for the periods presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it
relates to items recognized directly in equity, in which case it is recognized in equity.

 

Current tax expense is the expected
tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at period end, adjusted for amendments
to tax payable with regards to previous years.

 

Deferred tax is recognized in respect
of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes. Deferred tax is not recognized for temporary differences on the initial recognition of assets or liabilities in
a transaction that is not a business combination and that affects neither accounting nor taxable income or loss.

 

Deferred tax assets and liabilities
are offset if there is a legally enforceable right to offset current tax assets and liabilities, and they relate to income taxes levied
by the same tax authority on the same taxable entity.

 

Deferred tax is measured at the tax
rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively
enacted at the reporting date. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences,
to the extent that it is probable that future taxable profits will be available against which they can be utilized.

 

As a result of incurring scientific
research and development expenditures, management anticipates that there will be non-refundable tax credits receivable following the completion
of normal audit processes by tax authorities. Investment tax credits are recorded when received or when there is reasonable assurance
that the credits will be realized. Upon recognition, amounts will be recorded as a reduction of research and development expenditures.

 

Loss Per Share

 

Basic loss per share is computed
by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the reporting period.
Diluted loss per share is computed similar to basic loss per share except that the weighted average number of shares outstanding is increased
to include additional shares for the assumed exercise of stock options, warrants, and conversion of preferred shares, if dilutive. The
number of additional shares is calculated by assuming that outstanding preferred shares would convert to common shares and that outstanding
stock options and warrants were exercised and the proceeds from such exercises were used to acquire common stock at the average market
price during the reporting period.

 

Business Combinations

 

At the time of acquisition, the Company
determines whether what is acquired meets the definition of a business, in which case if it does, the transaction is considered a business
combination, and otherwise it is recorded as an asset acquisition.

 

    11 

     

    

 

Mind Medicine (MindMed)
Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For
the Year Ended December 31, 2020

 

		3.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Business Combinations
(Continued)

 

For an asset acquisition, the net
identifiable assets acquired and liabilities assumed are measured at the fair value of the consideration paid, based on their relative
fair values at the acquisition date. Acquisition related costs are included in the consideration paid and capitalized. No goodwill is
recorded and no deferred tax asset or liability arising from the assets acquired or liabilities assumed is recognized upon the acquisition
of the assets.

 

Business combinations are accounted
for using the acquisition method. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess
of the fair value of the consideration transferred including the recognized amount of any non-controlling interest in the acquiree, over
the fair value of the Company’s share of the identifiable net assets acquired is recorded as goodwill. Any contingent consideration
to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequent changes to the fair value of the
contingent consideration which is deemed to be an asset or liability will be recognized in accordance with IFRS 9 either in income or
as a change to other comprehensive income. If the contingent consideration is classified as equity, it shall not be remeasured.

 

Goodwill is initially measured at
cost, being the excess of the aggregate of the consideration transferred and the fair value of the net identifiable assets acquired and
liabilities assumed. When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss.

 

Acquisition costs are expensed as
incurred, unless they qualify to be treated as debt issue costs, or as cost of issuing equity securities. The measurement period is the
period from the date of acquisition to the date the Company obtains complete information about facts and circumstances that existed as
of the acquisition date – and is subject to a maximum of one year.

 

The Company elects on a transaction-by-transaction
basis whether to measure non-controlling interest at its fair value, or at its proportionate share of the recognized amount of the identifiable
net assets, at the acquisition date.

 

IFRS 9 Financial Instruments

 

Financial assets and liabilities,
including derivatives, are recorded on the statement of financial position when the Company becomes a party to the financial instrument
or derivative contract.

 

Classification and measurement
of financial instruments 

 

The Company measures a financial
instrument at its fair value plus, in the case of a financial instrument not at fair value through profit (loss) (“FVTPL”),
transaction costs that are directly attributable to the acquisition of the financial instrument. Transaction costs of financial instruments
carried at fair value through FVTPL are expensed in profit (loss).

 

Subsequent measurement of financial
assets depends on the Company’s business model for managing the asset and the cash flow characteristics of the asset. There are
three measurement categories in which the Company classifies its financial instruments:

 

Amortized cost: Financial assets
that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are
measured at amortized cost. Finance income from these financial instruments is recorded in net income (loss) using the effective interest
rate method.

 

    12 

     

    

 

Mind Medicine (MindMed)
Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For
the Year Ended December 31, 2020

  

		3.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

IFRS 9 financial Instruments
(Continued)

 

Fair value through other comprehensive
income (“FVOCI”): Financial instruments that are held for collection of contractual cash flows and for selling the financial
instruments, where the financial instruments’ cash flows represent solely payments of principal and interest, are measured at FVOCI.
Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and
foreign exchange gains and losses, which are recognized in net income (loss). When the financial instrument is derecognized, the cumulative
gain or loss previously recognized in OCI is reclassified from equity to net income (loss).

 

FVTPL: Financial instruments that
do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a financial instrument that is subsequently
measured at FVTPL and is not part of a hedging relationship is recognized in net income (loss) and presented net in comprehensive income
(loss) in the period in which it arises.

 

Financial liabilities are subsequently
measured at amortized cost using the effective interest method or at FVTPL. Financial liabilities are subsequently measured as FVTPL when
the financial liability is (i) contingent consideration of an acquirer in a business combination, (ii) held for trading, or (iii) it is
designated as FVTPL if eligible.

 

On December 31, 2020 the financial
instruments of the Company were as follows:

 

	 	Basis
	 	 
	Financial Assets	 
	Cash 	Amortized cost
	Funds held in trust	Amortized cost
	 	 
	Financial Liabilities	 
	Accounts payable and accrued liabilities	Amortized cost

 

Leases

 

At the commencement date of a
lease, the Company will recognize a liability to make lease payments and an asset representing the right to use the underlying asset during
the lease term. On an ongoing basis the Company separately recognizes the interest expense on the lease liability and the depreciation
expense on the right-of-use asset. The Company is also required to remeasure the lease liability upon the occurrence of certain events
such as a change in the lease term. The Company will recognize the amount of the remeasurement the lease liability as an adjustment to
the right-of-use asset. The Company currently has leases that are considered short term leases within IFRS 16, Leases, with a lease term
of 12 months or less. Payments for short-term leases are recognized on a straight-line basis as an expense in the statement of loss.

 

    13 

     

    

 

Mind Medicine (MindMed)
Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial
Statements

(Expressed in thousands
of United States Dollars)

For
the Year Ended December 31, 2020

  

		3.	SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Warrants Denominated in a Foreign
Currency

 

Warrants
issued by the Company and denominated in a currency different from the functional currency of the Company (i.e. a foreign currency) met
the definition of a derivative financial liability and were fair valued at each statement of financial position date using the market
value of the warrants traded on the NEO Exchange Inc. (“NEO Exchange”), with changes in the fair value recognized in the consolidated
statement of earnings (loss) and comprehensive earnings (loss). As a result of the change in functional currency of the Company from the
US dollar to the Canadian dollar, the warrants are no longer considered denominated in a foreign currency. The Company’s accounting
policy is to re-evaluate the classification of debt and equity instruments in situations where the terms of the instrument have not changed,
but the surrounding circumstances have changed. Accordingly, the warrant liability was transferred to equity instruments effective October
1, 2020. The warrants were transferred into equity at their fair value as at October 1, 2020, and as an equity instrument, the warrants
will not be revalued on an ongoing basis. 

 

Future accounting Changes

 

Amendments
to IAS 1 - Classification of Liabilities as Current or Non-Current 

 

In
January 2020, IASB issued Classification of Liabilities as Current or Non-current, which amends IAS 1 - Presentation of Financial Statements.
The narrow scope amendments affect only the presentation of liabilities in the statement of financial position and not the amount or timing
of their recognition. It clarifies that the classification of liabilities as current or non-current is based on rights that are in existence
at the end of the reporting period and specifies that classification is unaffected by expectations about whether an entity will exercise
its right to defer settlement of a liability. It also introduces a definition of ‘settlement’ to make clear that settlement
refers to the transfer to the counterparty of cash, equity instruments, other assets or services. The amendments are effective for annual
reporting periods beginning on or after January 1, 2023. Earlier application is permitted. The implementation of these amendments is not
expected to have a significant impact on the Company.

 

Amendment
to IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors 

 

These
amendments introduce the definition of an accounting estimate and include other amendments to IAS 8 to help entities distinguish changes
in accounting estimates from changes in accounting policies. The amendments are effective for annual periods beginning on or after January
1, 2023 and changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. Earlier
application is permitted. Management is currently assessing the impact of this amendment.

 

Amendments
to IFRS 3 - Business Combinations

 

Amendments
to IFRS 3 “Business Combinations” were issued in May 2020, and are effective on or after January 1, 2022, with earlier application
permitted. The amendments update references within IFRS 3 to the 2018 Conceptual Framework and require that the principles in IAS 37 “Provisions,
Contingent Liabilities and Contingent Assets” be used to identify liabilities and contingent assets arising from a business combination.
Adoption of these amendments is not expected to have a significant impact on the Company’s consolidated financial statements.

 

    14 

     

    

 

 

Mind
Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		4.	REVERSE TAKEOVER

 

On
February 27, 2020, the Company announced the completion of its reverse takeover transaction (the “Transaction”) by way of
a plan of arrangement under the Business Corporations Act (British Columbia) (the “Arrangement”) pursuant to the terms of
an arrangement agreement entered into on October 15, 2019 (the “Arrangement Agreement”) between Broadway, Madison Metals Inc.,
Broadway Delaware Subco Inc. (“Delaware Subco”) and MindMed US.

 

The Transaction

 

Immediately
prior to the closing of the Transaction, Broadway: (a) consolidated its common shares, warrants and options on an eight-for-one basis
(the “Consolidation”), (b) changed its name to “Mind Medicine (MindMed) Inc.” (the “Name Change”),
(c) reclassified its post-Consolidation common shares as subordinate voting shares (the “Subordinate Voting Shares”) and (d)
created a new class of multiple voting shares (the “Multiple Voting Shares”) ((c) and (d) together, the “Share Capital
Amendment”). Broadway’s shareholders received 6,232,525 Subordinate Voting Shares of the resulting issuer. The substance of
the Transaction is a reverse acquisition of a non-operating company. The Transaction does not constitute a business combination as the
Company does not meet the definition of a business under IFRS 3 – Business Combinations. Immediately after the Transaction, shareholders
of MindMed US owned 97% of the voting rights of the Company. As a result, the Transaction has been accounted for as a capital transaction
with MindMed US being identified as the accounting acquirer and the equity consideration being measured at fair value, using the acquisition
method of accounting. The Transaction has been accounted for in the consolidated financial statements as a continuation of the financial
statements of MindMed US.

 

NEO Exchange Listing

 

The
Subordinate Voting Shares of the Company were listed for trading on the NEO Exchange with the trading symbol “MMED” on March
3, 2020.

 

Purchase Price Consideration

 

MindMed
US is deemed to have acquired the former Broadway as part of the Arrangement. The transaction was accounted for using the acquisition
method of accounting whereby the assets acquired, and liabilities assumed were recorded at their estimated fair value at the acquisition
date. The acquisition was not assessed to be a business combination and is therefore treated as an asset acquisition under the scope of
IFRS 2 – Share Based Payments. The consideration consisted entirely of shares of the Company which were measured at the estimated
fair value on the date of acquisition. The fair value of the Subordinate Voting Shares issued to the former Broadway shareholders was
determined to be $1,539 based on the fair value of the shares issued.

 

In
connection with the acquisition of Broadway, the Company incurred acquisition costs of $395.

 

	Subordinate Voting Shares of the Company issued	 	 	6,232,525	 
	Fair value of shares issued @CAD$0.33 (USD $0.247) per share	 	$	1,539	 
	Identifiable assets acquired	 	 	23	 
	Identifiable liabilities assumed	 	 	(261	)
	Net liabilities assumed	 	 	238	 
	Acquisition costs	 	 	395	 
	Total purchase price (recorded as Listing expense)	 	$	2,172	 

 

    15

     

    

 

Mind
Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		5.	FUNDS HELD IN TRUST

 

Cash
held in trust of $nil (December 31, 2019 - $3,686) represents unrestricted funds held at a Canadian chartered bank by the Company’s
corporate counsel, representing proceeds from closed private placements less disbursements directed by the Company.

 

		6.	INTANGIBLE ASSETS

 

	Cost	 	 	 	 
	Balance, May 30, 2019	 	$	-	 
	Acquisition of 18-MC program	 	 	5,500	 
	Balance,
December 31, 2019 and December 31, 2020
	 	$	5,500	 
	Accumulated
amortization
	 	 	 	 
	Balance, May 30, 2019	 	 	-	 
	Amortization	 	$	275	 
	Balance,
December 31, 2019
	 	 	275	 
	Amortization	 	 	550	 
	Balance,
December 31, 2020
	 	$	825	 
	Net carrying amount	 	 	 	 
	December 31, 2019	 	$	5,225	 
	December 31, 2020	 	$	4,675	 

 

In
July 2019, MindMed US acquired the assets of the 18-methyloxycoronaridine (“18-MC”) program from Savant Addiction Medicine,
LLC in exchange for the issuance by MindMed US of 55,000,000 class A common shares. The intangible assets were valued based on the shares
exchanged. The shares were valued using third party arm’s-length purchases of the MindMed US class C common shares at the time of
acquisition of 18-MC which were issued at $0.10 per share.

 

		7.	SHARE CAPITAL

 

Pursuant
to the terms of the Arrangement, the Company’s equity structure reflects the equity structure of Broadway (the accounting acquiree),
including the equity interests Broadway issued to effect the combination. Accordingly, the equity structure of MindMed US (the accounting
acquirer) is restated using the exchange ratio established in the Agreement to reflect the number of shares of the Broadway (the accounting
acquiree) issued in the reverse takeover. On February 27, 2020, all outstanding Class B common shares (“Class B Shares”),
Class C common shares (“Class C Shares”) and Class D common shares (“Class D Shares”) of MindMed US were exchanged
for Class A common shares of MindMed US (“Class A Shares”), immediately following which all Class A Shares were exchanged,
on a one-for-one basis (the “Exchange Ratio”), for Subordinate Voting Shares or Multiple Voting Shares (in the case of Multiple
Voting Shares the exchange was on a one-for-one-hundred basis) of the Resulting Issuer (“Resulting Issuer Shares”) on a post-Consolidation
basis. Such Class A Shares were then cancelled pursuant to the Arrangement, and the MindMed US issued 1,000 common shares to the Company
as consideration for issuing the Resulting Issuer Shares to the former MindMed US shareholders.

 

    16

     

    

 

Mind
Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		7.	SHARE CAPITAL (Continued)

 

Authorized

 

The
Company’s authorized capital consists of (i) an unlimited number of Subordinate Voting Shares, and (ii) an unlimited number of Multiple
Voting Shares.

 

The
holders of Subordinate Voting Shares are entitled to one vote for each Subordinate Voting share held. The holders of Multiple Voting Shares
are entitled to 100 votes for each Multiple Voting Share held.

 

Voting Rights

 

All
holders of Subordinate Voting Shares and Multiple Voting Shares are entitled to receive notice of any meeting of shareholders of the Company,
and to attend, vote and speak at such meetings, except those meetings at which only holders of a specific class of shares are entitled
to vote separately as a class under the Business Corporations Act (British Columbia). A quorum for the transaction of business at any
meeting of shareholders is two persons present at the meeting, each of whom is entitled to vote at the meeting, and who hold or represent
by proxy in the aggregate not less than 5% of the outstanding shares of the Company entitled to vote at the meeting.

 

On
all matters upon which shareholders the Company are entitled to vote:

 

		·	each
Subordinate Voting Share is entitled to one vote per Subordinate Voting Share; and

		·	each
Multiple Voting Share is entitled to 100 votes per Multiple Voting Share.

 

Unless
a different majority is required by law or the articles of the Company, resolutions to be approved by shareholders require approval by
a simple majority of shareholders.

 

Issued
and outstanding Multiple Voting Shares, including fractions thereof, may at any time, subject to the FPI Condition (as defined below),
at the option of the holder, be converted into Subordinate Voting Shares at a ratio of 100 Subordinate Voting Shares per Multiple Voting
Share. Further, the board of directors of the Company may determine in the future that it is no longer advisable to maintain the Multiple
Voting Shares as a separate class of shares and may cause all of the issued and outstanding Multiple Voting Shares to be converted into
Subordinate Voting Shares at a ratio of 100 Subordinate Voting Shares per Multiple Voting Share.

 

Conversion Rights and Conditions

 

The
right of the Multiple Voting Shares to convert into Subordinate Voting Shares is subject to certain conditions in order to maintain the
status of the Company as a “foreign private issuer” under United States securities laws (the “FPI Condition”).

 

    17

     

    

 

Mind
Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		7.	SHARE CAPITAL (Continued)

 

Share Capital Issued

 

Mind Medicine (MindMed) Inc. Share
Capital

 

	 	 	 	 	Class A Voting	 	 	Class B Voting	 	 	Class C Non- Voting	 	 	Class D Non- Voting	 	 	Total	 	 	Amount	 
	Acquisition of 18-MC program	 	(i)	 	 	55,000,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	55,000,000	 	 	$	5,500	 
	Class B shares	 	(ii)	 	 	 	 	 	 	35,000,000	 	 	 	 	 	 	 	 	 	 	 	35,000,000	 	 	 	4	 
	Private placement	 	(iii)	 	 	 	 	 	 	 	 	 	 	46,993,671	 	 	 	 	 	 	 	46,993,671	 	 	 	4,699	 
	Private placement	 	(iv)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	10,000,000	 	 	 	10,000,000	 	 	 	1,000	 
	Director compensation	 	(v)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	725,025	 	 	 	725,025	 	 	 	73	 
	Offering - First Tranche	 	(vi)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	18,771,897	 	 	 	18,771,897	 	 	 	4,046	 
	Balance December 31, 2019	 	 	 	 	55,000,000	 	 	 	35,000,000	 	 	 	46,993,671	 	 	 	29,496,922	 	 	 	166,490,593	 	 	 	15,322	 
	Offering - Second and Third Tranches	 	(vii),(ix)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	78,333,158	 	 	 	78,333,158	 	 	 	18,041	 
	Employee termination agreement	 	(viii)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	100,000	 	 	 	100,000	 	 	 	23	 
	Shares exchanged under Arrangement	 	(x)	 	 	(55,000,000	)	 	 	(35,000,000	)	 	 	(46,993,671	)	 	 	(107,930,080	)	 	 	(244,923,751	)	 	 	(33,386	)
	Balance after Arrangement	 	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	$	-	 

 

Mind Medicine (MindMed) Inc. Share
Capital

 

	 	 	 	 	Subordinate	 	 	Multiple	 	 	Total Voting	 	 	 
	 	 	 	 	Voting	 	 	Voting	 	 	Rights	 	 	 
	Broadway share consolidation	 	(xi)	 	 	6,232,525	 	 	 	 	 	 	 	6,232,525	 	$	1,539
	Shares exchanged under Arrangement	 	(xii)	 	 	189,923,751	 	 	 	 	 	 	 	189,923,751	 	 	27,886
	Shares exchanged under Arrangement	 	(xii)	 	 	 	 	 	 	550,000	 	 	 	55,000,000	 	 	5,500
	Bought deal financing - May 2020	 	(xiii)	 	 	24,953,850	 	 	 	 	 	 	 	24,953,850	 	 	7,525
	Bought deal financing - Oct 2020	 	(xiv)	 	 	27,381,500	 	 	 	 	 	 	 	27,381,500	 	 	16,432
	Bought deal financing - Dec 2020	 	(xv)	 	 	18,170,000	 	 	 	 	 	 	 	18,170,000	 	 	6,340
	Warrants exercised	 	 	 	 	31,420,721	 	 	 	 	 	 	 	31,420,721	 	 	33,245
	Options exercised	 	 	 	 	2,563,073	 	 	 	 	 	 	 	2,563,073	 	 	1,318
	Share-based settlement payment	 	(xvi)	 	 	3,000,000	 	 	 	 	 	 	 	3,000,000	 	 	5,570
	Director compensation	 	(v)	 	 	2,489,740	 	 	 	 	 	 	 	2,489,740	 	 	249
	Balance December 31, 2020	 	 	 	 	306,135,160	 	 	 	550,000	 	 	 	361,135,160	 	 	$105,604

 

		(i)	In July 2019, MindMed US issued 55,000,000 Class A shares to Savant Addiction Medicine, LLC for the acquisition
of its 18-MC program. The shares were valued using third party arm’s-length purchases of MindMed US’s Class C shares at the
time of acquisition of 18-MC which were issued at $0.10 per share.

 

		(ii)	In July 2019, MindMed US issued 35,000,000 Class B shares at a price of $0.0001 per share yielding gross
proceeds of $4.

 

		(iii)	In September 2019, MindMed US completed a non-brokered private placement financing and sold 46,993,671
Class C shares at a price of $0.10 per share yielding gross proceeds of $4,699 before deducting share issuance costs of $85.

 

		(iv)	In September 2019, MindMed US sold 10,000,000 Class D shares to two members of the board of directors
of MindMed US, at a price of $0.10 per share yielding gross proceeds of $1,000.

 

    18

     

    

 

Mind
Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

7.       SHARE
CAPITAL (Continued)

 

Share Capital Issued (Continued)

 

		(v)	On September 16, 2019, MindMed US entered into an agreement with a director of the MindMed US pursuant
to which the director agreed to: (i) join the board of directors of MindMed US, (ii) obtain a loan (the “Loan”) of $500,000
for the sole purpose of acquiring 5,000,000 Class D shares, and (iii) purchase 5,000,000 Class D shares for $500.

 

		§	The Loan is secured by the Class D shares, which is the sole security and recourse against the director.
One-quarter of the Loan ($125) shall be automatically deemed to be repaid and satisfied on each six-month anniversary of the date of the
Loan (the “Repayment Date”) so long as the director remains a member of the board of directors of MindMed US.

 

		§	If the director ceases to be a member of the board of directors of MindMed US and all affiliates of MindMed
US, other than as a result of his disqualification under applicable corporate law or his resignation, the Loan shall be automatically
deemed to be repaid and satisfied in full and the director shall be fully and finally released from his obligations under the Loan.

 

		§	The principal remaining from time to time unpaid and outstanding shall bear interest, before and after
an event of default at 2% per annum calculated monthly, not in advance. Accrued and unpaid interest shall be payable on each Repayment
Date. The director has the right and privilege of prepaying the whole or any portion of the principal amount of the Loan at any time or
times prior to maturity or if an event of default has occurred, whichever comes first, without notice, bonus or penalty. All such prepayments
shall be applied first in satisfaction of any accrued but unpaid interest and thereafter to the outstanding principal amount of the Loan.

 

The Loan has been accounted for as
an option plan since MindMed does not have full recourse to the outstanding loan balance. In the event the director ceases to be a member
of the board of directors of MindMed US and all affiliates of MindMed US, the Class D Shares (which have since been exchanged for Subordinate
Voting Shares) would be tendered back to the Company without any payment being made. As a result, the Company has not recognized a loan
receivable or the corresponding Class D Shares (or resulting Subordinate Voting Shares) as outstanding. The Company has estimated a grant-
date fair value, which is recorded as share-based compensation expense over a two-year vesting period with a corresponding amount to share
capital. The fair value has been estimated using the Black- Scholes option pricing model with the following assumptions: (i) expected
dividend yield of 0%, (ii) expected volatility of 151%, (iii) risk-free rate of 1.74%, (iv) share price of $0.10, (v) forfeiture rate
of 0%, and (vi) expected life of 24 months. The total grant-date fair value is $500.

 

In connection with the Transaction,
the directors of MindMed US were elected as directors of the Company. The Class D Shares issued pursuant to the Loan were converted to
Subordinate Voting Shares. The resulting share-based compensation for the year ended December 31, 2020 is $249. Although 5,000,000 Subordinate
Voting Shares were issued to the director, only the portion that has vested, represented by the cumulative amount of share-based compensation
recognized (3,214,765 Subordinate Voting Shares), is reflected in the number of Subordinate Voting Shares issued and related share capital
balance.

 

    19

     

    

 

Mind
Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		7.	SHARE CAPITAL (Continued)

 

Share Capital Issued (Continued)

 

		(vi)	On December 19, 2019, MindMed US entered into an agency agreement with Canaccord Genuity Corp. (“Canaccord”)
and completed the first tranche of a private placement by MindMed US (the “MindMed US Offering”), issuing a total of 18,771,897
Class D Shares at a price of $0.33 CAD ($0.25) per share for gross proceeds of $4,727, before deducting cash share issuance costs of $443.
On closing of the first tranche of the MindMed US Offering, MindMed issued Canaccord, as agent, 1,314,033 compensation warrants (note
8).

 

		(vii)	On February 18, 2020, MindMed US completed the second tranche of the MindMed US Offering, issuing a total
of 37,105,370 Class D Shares at a price of $0.33 CAD ($0.25) per share for gross proceeds of $9,227. On closing of the second tranche
of the MindMed US Offering, MindMed US issued Canaccord, as agent, 2,597,376 compensation warrants.

 

		(viii)	On February 18, 2020, MindMed US issued 100,000 Class D Shares to a former executive of MindMed US.

 

		(ix)	On February 26, 2020, MindMed US completed the third tranche of the MindMed US Offering, issuing a total
of 41,227,788 Class D Shares at a price of $0.33 CAD ($0.25) per share for gross proceeds of $10,252. On closing of the third tranche
of the MindMed US Offering, MindMed US issued 2,045,945 compensation warrants and 840,000 compensation warrants to its agents. Total cash
share issuance costs for the second and third tranches of the MindMed US Offering of $802 were deducted from the gross proceeds.

 

		(x)	Pursuant to the Arrangement Agreement, 244,923,751 Class A Shares were exchanged for Subordinate Voting
Shares or Multiple Voting Shares, as applicable. Pursuant to the Arrangement Agreement, 1,000 common shares of MindMed US were issued
to Broadway in consideration of the issuance of the Subordinate Voting Shares and Multiple Voting Shares to former MindMed US shareholders.

 

		(xi)	As at February 26, 2020, Broadway had 49,860,200 common shares issued and outstanding; pursuant to the
Arrangement Agreement, Broadway’s common shares were consolidated on an eight to one (8:1) basis and converted to Subordinate Voting
Shares.

 

		(xii)	Pursuant to the Arrangement Agreement, Class A Shares were exchanged for either: (a) Subordinate Voting
Shares (189,923,751 Class A Shares were exchanged for 189,923,751 Subordinate Voting Shares); or (b) Multiple Voting Shares (55,000,000
shares were exchanged for 550,000 Multiple Voting Shares).

 

		(xiii)	On May 26, 2020, the Company completed a bought deal financing resulting in the issuance of 24,953,850
units at a price per unit of $0.53CAD ($0.38) for gross proceeds of $9,582. Each unit comprises one subordinate voting share and one-half
of one Subordinate Voting Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof
to purchase one Subordinate Voting Share at an exercise price of $0.79CAD ($0.57) until May 26, 2022. Also in connection with this transaction,
the Company issued 994,034 compensation warrants to its agent (Note 9). Total cash share issuance costs of $1,291 were deducted from the
gross proceeds.

 

    20

     

    

 

Mind
Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		7.	SHARE CAPITAL (Continued)

 

Share Capital Issued (Continued)

 

		(xiv)	On October 30, 2020, the Company completed a bought deal financing resulting in the issuance of 27,381,500
units of the Company at a price per Unit of $1.05 CAD ($0.79) for gross proceeds of $22,075. Each Unit comprised one subordinate voting
share of the Company and one-half of one Subordinate Voting Share purchase warrant. Each Warrant entitles the holder thereof to purchase
one Subordinate Voting Share at an exercise price of $1.40 CAD ($1.05) until October 30, 2023. Also in connection with this transaction,
the Company issued 1,090,200 compensation warrants to its agent (Note 9). Total cash share issuance costs of $1,589 were deducted from
the gross proceeds.

 

		(xv)	On December 11, 2020, the Company completed a bought deal financing resulting in the issuance of 18,170,000
units of the Company (the "Units") at a price per Unit of $1.90 CAD ($1.49) for gross proceeds of $26,506. Each Unit comprised
one subordinate voting share of the Company and one-half of one Subordinate Voting Share purchase warrant. Each Warrant entitles the holder
thereof to purchase one Subordinate Voting Share at an exercise price of $2.45 CAD ($1.92) until December 11, 2023. Also in connection
with this transaction, the Company issued 1,624,290 compensation warrants to its agent (Note 9). Total cash share issuance costs of $2,197
were deducted from the gross proceeds.

 

		(xvi)	On December 11, 2020, the Company issued 3,000,000 subordinate voting shares in settlement of a claim
made by a former promoter of the Company. The shares were valued at $2.42 CAD ($1.90) which was the value on the date that the settlement
was approved.

 

Share Capital Reserved for Issuance

 

A
summary of shares issued and reserved for issuance is summarized below:

	 	 	Number of Subordinated 

Voting Share Equivalents	 
	Subordinate Voting	 	 	306,135,160	 
	Multiple Voting	 	 	55,000,000	 
	Unvested portion of director loan shares	 	 	1,785,235	 
	Stock Options	 	 	22,592,427	 
	Compensation Warrants	 	 	1,090,200	 
	Financing Warrants	 	 	14,087,675	 
	Total – December 31, 2020	 	 	400,690,697	 

 

    21

     

    

 

Mind
Medicine (MindMed) Inc. (Formerly Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

 

		8.	WARRANTS

 

	 	 	 	 	 	 	 	 	 	 	 	Weighted	 
	 	 	 	 	 	 	 	 	 	 	 	Average	 
	 	 	Compensation	 	 	Financing	 	 	 	 	 	Exercise Price	 
	 	 	Warrants	 	 	Warrants	 	 	Amount	 	 	(CAD$)	 
	Balance, May  30, 2019	 	 	-	 	 	 	-	 	 	$	-	 	 	$	-	 
	Issued	 	 	1,314,033	 	 	 	-	 	 	 	153	 	 	 	0.33	 
	Exercised	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Expired	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Balance, December 31, 2019	 	 	1,314,033	 	 	 	-	 	 	$	153	 	 	$	0.33	 
	Issued	 	 	9,210,445	 	 	 	36,074,118	 	 	 	24,502	 	 	 	1.29	 
	Exercised	 	 	(9,434,278	)	 	 	(21,986,443	)	 	 	(8,784	)	 	 	1.02	 
	Expired	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Balance, December 31, 2020	 	 	1,090,200	 	 	 	14,087,675	 	 	$	15,871	 	 	$	1.78	 

 

The
weighted average market fair value of shares purchased through warrant exercises during the year ended December 31, 2020 was CAD$2.22.

 

	 	 	December	 	 	February	 	 	May Bought	 	 	October	 	 	December	 
	 	 	2019	 	 	2020	 	 	Deal	 	 	Bought Deal	 	 	Bought Deal	 
	Warrants Issued	 	 	1,314,033	 	 	 	5,483,321	 	 	 	994,034	 	 	 	1,642,890	 	 	 	1,090,200	 
	Exercised	 	 	(1,314,033	)	 	 	(5,483,321	)	 	 	(994,034	)	 	 	(1,642,890	)	 	 	-	 
	Expired	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Outstanding December 31, 2020	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	1,090,200	 
	Exercise Price (CAD$)	 	$	0.33	 	 	$	0.33	 	 	$	0.53	 	 	$	1.05	 	 	$	1.90	 
	Expiry Date	 	 	2021-02-27	 	 	 	2021-02-27	 	 	 	2022-05-26	 	 	 	2022-10-30	 	 	 	2022-12-07	 

 

 

Compensation
Warrants

 

MindMed
US issued 1,314,033 compensation warrants in relation to the completion of the first tranche of the MindMed US Offering which closed on
December 19, 2019 (Note 7(vi)). The warrants had an expiry date of February 27, 2021. Each warrant entitled the holder to purchase one
Subordinate Voting Share, at $0.33 CAD per share until the expiry date. The fair value was estimated using the Black-Scholes option pricing
model with the following assumptions: (i) expected dividend yield of 0%, (ii) expected volatility of 124%, (iii) risk-free rate of 1.69%,
(iv) share price of $0.33 CAD, (v) forfeiture rate of 0%, and (vi) expected life of 1.2 years.

 

MindMed
US issued 5,483,321 compensation warrants in relation to the completion of the second and third tranches of the MindMed US Offering which
took place in February 2020 (Note 7(vii)(ix)). The warrants have an expiry date of February 27, 2021. Each warrant entitles the holder
to purchase one Subordinate Voting Share at $0.33 CAD per share until the expiry date. The fair value has been estimated using the Black-Scholes
option pricing model with the following assumptions: (i) expected dividend yield of 0%, (ii) expected volatility of 124%, (iii) risk-free
rate of 1.62%, (iv) share price of $0.33 CAD, (v) forfeiture rate of 0%, and (vi) expected life of 1 year.

 

Pursuant
to the terms of the Arrangement, all warrants of MindMed US were exchanged for warrants of the Company.

 

    22

     

    

 

 

Mind Medicine (MindMed) Inc. (Formerly
Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		8.	WARRANTS (Continued)

 

Compensation
Warrants (Continued)

 

The
Company issued 994,034 compensation warrants to the underwriter in connection with a bought deal financing (Note 7(xiii)) which was completed
on May 26, 2020. The warrants have an expiry date of May 26, 2022. Each warrant entitles the holder to purchase one Subordinate Voting
Share at $0.53 CAD per share until the expiry date. The fair value has been estimated using the Black-Scholes option pricing model with
the following assumptions: (i) expected dividend yield of 0%, (ii) expected volatility of 93%, (iii) risk-free rate of 0.30%, (iv) share
price of $0.55 CAD, (v) forfeiture rate of 0%, and (vi) expected life of 2 years.

 

The
Company issued 1,642,890 broker warrants to the underwriter in connection with a bought deal financing (Note 7(xiv)) which was completed
on October 30, 2020. The warrants have an expiry date of October 30, 2022. Each warrant entitles the holder to purchase one unit at $1.05
CAD per warrant until the expiry date. Each unit entitles the holder to one Subordinate Voting Share and one half Subordinate Voting Share
financing warrant. Each financing warrant entitles the holder to purchase one Subordinate Voting Share at $1.40 CAD until expiry on October
30, 2022. The fair value has been estimated using the Black-Scholes option pricing model with the following assumptions: (i) expected
dividend yield of 0%, (ii) expected volatility of 103%, (iii) risk-free rate of 0.27%, (iv) share price of $1.18 CAD, (v) forfeiture rate
of 0%, and (vi) expected life of 2 years.

 

The
Company issued 1,090,200 broker warrants to the underwriter in connection with a bought deal financing (Note 7(xv)) which was completed
on December 11, 2020. The warrants have an expiry date of December 11, 2022. Each warrant entitles the holder to purchase one unit at
$1.90 CAD per warrant until the expiry date. Each unit entitles the holder to one Subordinate Voting Share and one half Subordinate Voting
Share financing warrant. Each financing warrant entitles the holder to purchase one Subordinate Voting Share at $2.45 CAD until expiry
on December 11, 2022. The fair value has been estimated using the Black-Scholes option pricing model with the following assumptions: (i)
expected dividend yield of 0%, (ii) expected volatility of 95%, (iii) risk-free rate of 0.30%, (iv) share price of $5.56 CAD, (v) forfeiture
rate of 0%, and (vi) expected life of 2 years.

 

Financing
Warrants

 

	 	 	May Bought	 	 	October	 	December	 
	 	 	Deal (Note	 	 	Bought Deal	 	Bought Deal	 
	 	 	7(xiii))	 	 	(Note 7(xiv))	 	(Note 7(xv))	 
	Warrants Issued	 	 	12,476,925	 	 	14,512,193	 	 	9,085,000	 
	Exercised	 	 	(9,629,750	)	 	(9,937,843)	 	 	(2,418,850	)
	Expired	 	 	-	 	 	-	 	 	-	 
	Outstanding December 31, 2020	 	 	2,847,175	 	 	4,574,350	 	 	6,666,150	 
	Exercise Price (CAD$)	 	$	0.79	 	$	1.40	 	$	2.45	 
	Expiry Date	 	 	2022-05-26	 	 	2022-10-30	 	 	2022-12-07	 

 

The
financing warrants are valued based on the 10 day weighted average trading price of the warrants on the NEO Exchange from the start of
trading.

 

    23

     

    

 

Mind Medicine (MindMed) Inc. (Formerly
Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		9.	STOCK OPTIONS

 

The
Company has a stock option plan to advance the interests of the Company by providing employees, contractors and directors of the Company
a performance incentive for continued and improved service with the Company. The plan sets out the framework for determining eligibility
as well as the terms of any stock-based compensation granted. The plan was approved by the shareholders as part of the Arrangement. The
standard vesting terms for employee grants are 25% on the first anniversary of the grant date and 1/36th thereafter each month for succeeding
36 months. 

 

The
Company issued 18,902,500 options on February 27, 2020 and 300,000 options on March 24, 2020 to employees and directors. The fair value
has been estimated using the Black-Scholes option pricing model with the following assumptions: (i) expected dividend yield of 0%, (ii)
expected volatility of 124%, (iii) risk-free rate of 1.62%, (iv) share price of $0.33 CAD, (v) forfeiture rate of 0%, and (vi) expected
life of 5 years. Included in this group were 7,332,500 options granted to directors and contractors which included non-standard vesting
terms which provided for vesting terms from immediate vesting to monthly vesting up to 24 months.

 

The
Company issued 1,770,000 options on April 13, 2020 and 1,450,000 options on May 6, 2020 to employees and directors. The fair value has
been estimated using the Black-Scholes option pricing model with the following assumptions: (i) expected dividend yield of 0%, (ii) expected
volatility of 93%, (iii) risk-free rate of 0.3%, (iv) share price of $0.54 CAD for April options issued and CAD$0.55 for May options issued,
(v) forfeiture rate of 0%, and (vi) expected life of 5 years.

 

The
Company issued 2,250,000 options on August 15, 2020 and 2,078,000 options on September 9, 2020 and to employees and directors. The fair
value has been estimated using the Black-Scholes option pricing model with the following assumptions: (i) expected dividend yield of 0%,
(ii) expected volatility of 100-103%, (iii) risk-free rate of 0.37%, (iv) share price of $0.43 CAD for August options issued and $0.45
for September options issued, (v) forfeiture rate of 0%, and (vi) expected life of 5 years.

 

	 	 	Number of

 Options	 	 	Weighted

 Average

                                                                                Exercise Price
	 
	Balance, December 31, 2019	 	 	-	 	 	$	-	 
	Issued	 	 	26,775,500	 	 	 	0.36	CAD
	Exercised	 	 	(2,563,073	)	 	 	0.33	CAD
	Cancelled	 	 	(1,620,000	)	 	 	0.37	CAD
	Balance, December 31, 2020	 	 	22,592,427	 	 	$	0.38	CAD

 

The
weighted average market price of options exercised in the year ended December 31, 2020 was $3.75 CAD. 

 

    24

     

    

 

Mind Medicine (MindMed) Inc. (Formerly
Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		9.	STOCK OPTIONS (Continued)

 

The
following options were issued and outstanding as at December 31, 2020:

 

	Grant Date	 	Expiry Date	 	Number of

 Options
	 	 	Exercise

 Price
	 	 	Exercisable	 
	27-Feb-20	 	 27-Feb-25	 	 	15,044,427	 	 	$	0.33	CAD	 	 	1,291,111	 
	24-Mar-20	 	24-Mar-25	 	 	300,000	 	 	$	0.33	CAD	 	 	-	 
	13-Apr-20	 	13-Apr-25	 	 	1,770,000	 	 	$	0.54	CAD	 	 	-	 
	06-May-20	 	06-May-25	 	 	1,150,000	 	 	$	0.55	CAD	 	 	-	 
	15-Aug-20	 	15-Aug-25	 	 	2,250,000	 	 	$	0.43	CAD	 	 	-	 
	09-Sep-20	 	09-Sep-25	 	 	2,078,000	 	 	$	0.45	CAD	 	 	-	 
	December 31, 2020	 	 	 	 	22,592,427	 	 	 	 	 	 	 	1,291,111	 

 

The
weighted average contractual life for the remaining options as at December 31, 2020 is 4.3 years. For the year ended December 31, 2020,
the Company recognized compensation expense from stock options of $2,991 included in share-based payments.

 

		10.	INCOME TAXES

 

Income taxes recoverable have not
been recognized in the consolidated statement of operations and comprehensive loss, as the Company has been incurring losses since inception,
and it is not probable that future taxable profits will be available against which the accumulated tax losses can be utilized.

 

Unrecognized Deferred Tax Assets

 

As at December 31, 2020, deferred tax assets have not been
recognized with respect to the following items:

 

	 	 	Dec. 31,
 2020	 	 	Dec. 31,
 2019	 
	Non-capital losses	 	$	7,107	 	 	$	3,220	 
	Share issuance costs	 	 	1,532	 	 	 	-	 
	Accounting basis of intangible assets in excess of tax basis	 	 	144	 	 	 	92	 
	Scientific research and experimental development expenditures	 	 	-	 	 	 	2,049	 
	Deferred compensation	 	 	48	 	 	 	31	 
	Share-based payments	 	 	-	 	 	 	72	 
	Start-up costs	 	 	2,265	 	 	 	-	 
	 	 	$	11,096	 	 	$	5,464	 

 

    25

     

    

 

Mind Medicine (MindMed) Inc. (Formerly
Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		10.	INCOME TAXES (Continued)

 

The reconciliation of the statutory
income tax rate applied to the net loss for the period to the income tax expense is as follows:

 

	 	 	Dec. 31,
 2020	 	 	Dec. 31,
 2019	 
	Loss before income taxes	 	$	(35,339	)	 	$	(5,474	)
	 	 	 	 	 	 	 	 	 
	Statutory income tax rate	 	 	27.00	%	 	 	27.87	%
	Income tax recovery based on statutory income tax rate	 	 	(9,541	)	 	 	(1,526	)
	Foreign tax rate differential	 	 	46	 	 	 	-	 
	Non-deductible expenses	 	 	2,854	 	 	 	3	 
	Foreign exchange, other	 	 	342	 	 	 	-	 
	Deferred tax asset not recognized	 	 	6,301	 	 	 	1,523	 
	 	 	$	-	 	 	$	-	 

 

The Company’s Canadian non-capital
losses of $1,793 available for carryforward until 2040.

 

The Company’s U.S. non-capital
losses do not expire.

 

		11.	DERIVATIVE LIABILITY - FOREIGN CURRENCY WARRANTS

 

The
following summarizes the change in foreign currency warrants:

 

	Fair value of warrants issued May 26, 2020 (Note 7(xiii))	 	$	805	 
	 	 	 	 	 
	Fair value adjustment June 30, 2020	 	 	(125	)
	Fair value adjustment September 30, 2020	 	 	998	 
	 	 	 	873	 
	 	 	 	 	 
	Reclass to Warrant equity	 	 	(1,678	)
	 	 	 	 	 
	Balance, December 31, 2020	 	$	-	 

 

These
warrants were considered financial instruments and were fair valued at each statement date using the market value of the warrants traded
on the NEO Exchange, with changes in the fair value recognized in the consolidated statement of earnings (loss) and comprehensive earnings
(loss). This is considered to be a Level 1 fair value measurement within the fair value hierarchy. As a result of the change in functional
currency of the parent company, the warrant liability was reclassified to equity instruments effective October 1, 2020. (See Note 3)

 

		12.	LOSS PER SHARE

 

The
weighted average number of Subordinate Voting Shares outstanding for the year ended December 31,
2020 was 361,135,160. In calculating the weighted average number of shares, the Multiple Voting Shares are included assuming the shareholders
executed their conversion rights. The Company has not adjusted its weighted average number of Subordinate Voting shares outstanding in
the calculation of diluted loss per share, as the effect of warrants and options is anti-dilutive.

 

    26

     

    

 
Mind Medicine (MindMed) Inc. (Formerly
Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

		13.	RESEARCH AND DEVELOPMENT

 

	 	 	 
Year Ended

 December 31,

 2020
	 	 	Period from 
 May 30, 2019 

to December 31,

 2019	 
	Payroll,
                                            consulting and benefits
	 	$	3,152	 	 	$	801	 
	Licensing fees	 	 	700	 	 	 	727	 
	Manufacturing costs	 	 	3,841	 	 	 	34	 
	Clinical research and regulatory expenses	 	 	4,117	 	 	 	115	 
	Data and study acquisition costs	 	 	2,838	 	 	 	-	 
	Other	 	 	739	 	 	 	73	 
	 	 	$	15,387	 	 	$	2,049	 

 

		14.	GENERAL AND ADMINISTRATIVE

 

	 	 	 
Year Ended

 December 31,

 2020
	 	 	Period from 

May 30, 2019 

to December 31,

 2019	 
	Payroll,
                                            consulting fees and benefits
	 	$	2,703	 	 	$	1,174	 
	Legal fees	 	 	814	 	 	 	1,045	 
	Accounting and audit	 	 	301	 	 	 	312	 
	Marketing and investor relations	 	 	2,381	 	 	 	185	 
	Other	 	 	1,491	 	 	 	389	 
	 	 	$	7,690	 	 	$	3,105	 

 

		15.	COMMITMENTS AND CONTINGENCIES

 

As at December 31, 2020, the Company
has obligations to make future payments, representing significant research and development contracts and other commitments that are known
and committed in the amount of approximately $8,586. Most of these agreements are cancelable by the Company with notice. These commitments
include agreements related to the conduct of the clinical trials, sponsored research, manufacturing and preclinical studies.

 

The Company enters into research,
development and license agreements in the ordinary course of business where the Company receives research services and rights to proprietary
technologies. Milestone and royalty payments that may become due under various agreements are dependent on, among other factors, clinical
trials, regulatory approvals and ultimately the successful development of a new drug, the outcome and timing of which are uncertain.

 

    27

     

    

 

 

Mind Medicine (MindMed) Inc. (Formerly
Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

	15.	COMMITMENTS AND CONTINGENCIES (Continued)

 

The Company periodically enters into
research and license agreements with third parties that include indemnification provisions customary in the industry. These guarantees
generally require the Company to compensate the other party for certain damages and costs incurred as a result of claims arising from
research and development activities undertaken by or on behalf of the Company. In some cases, the maximum potential amount of future payments
that could be required under these indemnification provisions could be unlimited. These indemnification provisions generally survive termination
of the underlying agreement. The nature of the indemnification obligations prevents the Company from making a reasonable estimate of the
maximum potential amount it could be required to pay. Historically, the Company has not made any indemnification payments under such agreements
and no amount has been accrued in the consolidated financial statements with respect to these indemnification obligations.

 

	16.	RELATED PARTY TRANSACTIONS

 

For the year ended December 31, 2020,
the key management personnel of the Company were the board of directors, Executive Chair & Co-Chief Executive Officer, Co-Chief Executive
Officer & Head of Investor Relations, Chief Operating Officer, President, Chief Medical Officer, Chief Scientific Officer and Chief
Financial Officer.

 

Compensation for key management personnel
of the Company was as follows:

 

	 	 	Year Ended December 31, 2020	 	 	Period from 

    May 30, 2019

    to December 31,

    2019	 
	Payroll, consulting fees and other benefits	 	$	$2,389	 	 	$	1,064	 
	Share-based compensation	 	 	670	 	 	 	-	 

 

The Company incurred legal fees of
$1,469 to companies controlled by a director of the Company during the year ended December 31, 2020.

 

As at December 31, 2020 the Company
had accounts payable and accrued liabilities outstanding of $93 (2019 - $786) to a company controlled by a director.

 

The Directors do not receive cash
compensation for their services as directors but are reimbursed for expenses incurred. Directors received share-based compensation of
$384 (2019 - $73).

 

	17.	MANAGEMENT OF CAPITAL

 

The Company defines its capital as
share capital, warrants and deficit. The Company’s objectives when managing capital are to ensure there are sufficient funds available
to carry out its research and development programs. To date, these programs have been funded through the sale of equity securities.

 

The Company also intends to source non-dilutive funding by
accessing grants, government assistance and tax incentives, and through partnerships with corporations and research institutions. The
Company uses budgets and purchasing controls to manage its costs. The Company is not exposed to any externally imposed capital requirements.

 

    28

     

    

 

Mind Medicine (MindMed) Inc. (Formerly
Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

	18.	FINANCIAL INSTRUMENTS

 

Fair Value

 

Fair Value Measurement provides a
hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable
inputs are those that reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions
with respect to how market participants would price an asset or liability. These two inputs used to measure fair value fall into the following
three different levels of the fair value hierarchy:

 

Level 1 Quoted prices in active markets
for identical instruments that are observable.

 

Level 2 Quoted prices in active markets
for similar instruments; inputs other than quoted prices that are observable and derived from or corroborated by observable market data.

 

Level 3 Valuations derived from valuation
techniques in which one or more significant inputs are unobservable.

 

The hierarchy requires the use of
observable market data when available.

 

Cash and accounts payable and accrued
liabilities are all short-term in nature and, as such, their carrying values approximate fair values. The derivative liability –
foreign currency warrants are valued as Level 1 in the hierarchy, using trading values established in an active market.

 

Risks

 

The Company has exposure to credit
risk, liquidity risk, interest rate risk and currency risk. The Company’s board of directors has overall responsibility for the
establishment and oversight of the Company’s risk management framework. The Audit Committee of the board of directors is responsible
for reviewing the Company’s risk management policies.

 

		(a)	Credit risk

 

Credit risk is the risk of financial
loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations and arises principally from
the Company’s cash. The carrying amount of these financial assets represents the maximum credit exposure. Cash and funds held in
trust are on deposit with major American and Canadian chartered banks and the Company invests in high-grade short-term instruments.

 

		(b)	Liquidity risk

 

Liquidity risk is the risk that the
Company will not be able to meet its financial obligations as they fall due. The Company is a development stage company and is reliant
on external fundraising to support its operations. Once funds have been raised, the Company manages its liquidity risk by investing in
cash and short-term instruments to provide regular cash flow for current operations. It also manages liquidity risk by continuously monitoring
actual and projected cash flows. All accounts payable and accrued liabilities are due within 12 months. The board of directors reviews
and approves the Company’s operating and capital budgets, as well as any material transactions not in the ordinary course of business.

 

    29

     

    

 

Mind Medicine (MindMed) Inc. (Formerly
Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

 

	18.	FINANCIAL INSTRUMENTS (Cont’d)

 

		(c)	Interest rate risk

 

Interest rate risk is the risk that
the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company
holds its cash in bank accounts that have a variable rate of interest. The Company manages its interest rate risk by holding highly liquid
short-term instruments and by holding its investments to maturity, where possible. The Company earned interest income for the year ended
December 31, 2020 of $13. Therefore, a 100 basis point change in the average interest rate for the year ended December 31, 2020 would
have no material impact.

 

		(d)	Currency risk

 

The Company is exposed to currency
risk related to the fluctuation of foreign exchange rates and the degree of volatility of those rates. Currency risk is limited to the
portion of the Company’s business transactions and balances denominated in currencies other than the United States dollar.

 

	Exposure to Foreign Currency (in USD)	 	Cash	 	 	Payables	 	 	Expenses December 31, 2020	 
	Canadian Dollars	 	$	1,568	 	 	$	(207	)	 	$	1,794	 
	Australian Dollars	 	 	117	 	 	 	(62	)	 	 	2,165	 
	Swiss Francs	 	 	228	 	 	 	(63	)	 	 	2,820	 
	Swedish Krona	 	 	-	 	 	 	(14	)	 	 	14	 
	Euro	 	 	-	 	 	 	(130	)	 	 	239	 
	British Pounds	 	 	-	 	 	 	-	 	 	 	27	 
	Balance, December 31, 2020	 	 	1,913	 	 	$	(476	)	 	$	7,059	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Therefore, a 1% change in the USD exchange
rate would have a net impact on foreign currency balances as at December 31, 2020 of $14. Also, a 1% change in the USD exchange rate on
expenditures would have a net impact during the period of $71 assuming that all other variables remained constant.

 

	19.	SUBSEQUENT EVENTS

 

On January 7, 2021, the Company announced
that it had closed a bought deal short form prospectus offering. In connection with the offering, the Company issued 20,930,000 units
at a price per unit of $4.40 CAD for gross proceeds of $72,343. Each Unit comprised one subordinate voting share of the Company and one-half
of one Subordinate Voting Share purchase warrant. Each whole warrant entitles the holder thereof to purchase one Subordinate Voting Share
at an exercise price of $5.75 CAD until January 7, 2024.

 

    30

     

    

 

Mind Medicine (MindMed) Inc. (Formerly
Broadway Gold Mining Ltd.)

Notes to Consolidated Financial Statements

(Expressed in thousands of United States Dollars)

For the Year Ended December 31, 2020

 

  

	19.	SUBSEQUENT EVENTS (Cont’d)

 

On February
26, 2021, the Company announced that it had closed the acquisition of HealthMode, Inc. (a digital medicine and therapeutics company).
In consideration for the acquisition of HealthMode, MindMed has issued 81,833 multiple voting shares of MindMed (equivalent to 8,183,300
subordinate voting shares) and will make payments of approximately $224 in cash. All multiple voting shares issued pursuant to the
Acquisition were issued at a price of $385.87 CAD, which is equivalent to $3.8587 CAD per underlying subordinate voting share.
The market price was calculated using the five-day volume weighted average trading price of the subordinate voting shares of MindMed,
as reported by the NEO Exchange as at the close of business on January 19, 2021, which was the date on which the parties entered
into a non-binding letter of intent. Total consideration for the acquisition is $31,863. As at March 26, 2021, the purchase price allocation
has not been finalized.

 

As part of
the acquisition, MindMed has agreed to assume 7,891 outstanding HealthMode options at an exchange ratio of one HealthMode option for 4.260451
options of MindMed issuable under MindMed’s stock option plan resulting in issuance of 33,619 MindMed options. Each MindMed option
issued will be fully vested and be exercisable into one subordinate voting share at an exercise price of $0.02 per share (taking
into account the exchange ratio).

 

On March 9, 2021, the Company announced
that it had closed a private placement offering. In connection with the offering, the Company issued 6,000,000 units at a price per unit
of $3.25 CAD for gross proceeds of $15,434. Each unit comprised one subordinate voting share of the Company and one-half of one Subordinate
Voting Share purchase warrant. Each whole warrant entitles the holder thereof to purchase one Subordinate Voting Share at an exercise
price of $4.40 CAD until March 9, 2024.

 

    31Exhibit 4.3

 

 

MIND MEDICINE (MINDMED) INC.

 

(FORMERLY BROADWAY GOLD MINING LTD.)

 

MANAGEMENT’S DISCUSSION AND ANALYSIS

 

FOR THE QUARTER AND FINANCIAL YEAR ENDED DECEMBER
31, 2020

 

Dated: March 29, 2021

 

http://mindmed.co

 

     

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

ABOUT THIS MANAGEMENT’S
DISCUSSION AND ANALYSIS

 

All references in this management’s discussion
and analysis, or MD&A, to the “Company”, “MindMed”, “we”, “us”, or “our”
refer to Mind Medicine (MindMed) Inc., unless otherwise indicated or the context requires otherwise. The following MD&A is prepared
as of March 29, 2021 for MindMed for the year ended December 31, 2020 and should be read in conjunction with the audited consolidated
financial statements for the year ended December 31, 2020 (the “Financial Statements”), which have been prepared by management
in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board (“IASB”).

 

Our IFRS accounting policies are referred to in
note 3 of the Financial Statements. All amounts are in United States dollars, unless otherwise indicated. References to “CAD$”
are to Canadian dollars.

 

Mind Medicine (MindMed) Inc. (formerly Broadway
Gold Mining Ltd. (“Broadway”)) was incorporated under the laws of the Province of British Columbia. Its wholly owned subsidiary,
Mind Medicine, Inc. (“MindMed US”) was incorporated in Delaware. Prior to February 27, 2020, the Company’s
operations were conducted through MindMed US.

 

On February 27, 2020, MindMed completed a
reverse takeover transaction with Broadway by way of a plan of arrangement (the “Arrangement”) under the Business Corporations
Act (British Columbia) pursuant to the arrangement agreement dated as of October 15, 2019 between Broadway, Madison Metals Inc.,
Broadway Delaware Subco Inc. and MindMed US (the “Arrangement Agreement”) which resulted in the Company becoming the parent
company of MindMed US. MindMed US is deemed to be the acquirer in the reverse takeover transaction. As a result, the consolidated statements
of financial position are presented as a continuance of MindMed US and the comparative figures presented are those of MindMed US.

 

Additional information relating to the Company,
including the Company’s most recent Annual Information Form, can be found under the Company’s SEDAR profile at www.sedar.com.

 

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

 

This MD&A contains forward-looking
statements within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in
nature are forward-looking, and the words “anticipate”, “believe”, “expect”,
 “estimate”, “may”, “will”, “could”, “leading”, “intend”,
 “contemplate”, “shall” and similar expressions are generally intended to identify forward-looking
statements. Forward-looking statements in this MD&A include, but are not limited to, statements with respect to: the duration
and effects of COVID-19 and any other pandemics on the Company’s workforce, business, operations and financial condition;
expectations of future loss and accumulated deficit levels; projected financial position and estimated cash burn rate; requirements
for, and the ability to obtain, future funding on favorable terms or at all; projections for development plans and progress of each
of MindMed’s product candidates, particularly with respect to the timely and successful completion of studies and trials and
availability of results from such studies and trials; expectations about MindMed’s product candidates’ safety and
efficacy; expectations regarding MindMed’s ability to arrange for and scale up the manufacturing of MindMed’s product
candidates; expectations regarding the progress, and the successful and timely completion, of the various stages of the regulatory
approval process; expectations about the timing of achieving milestones and the cost of MindMed’s development programs; plans
to market, sell and distribute product candidates; expectations regarding the acceptance of the Company’s product candidates
by the market; MindMed’s ability to retain and access appropriate staff, management and expert advisers; expectations about
whether various clinical and regulatory milestones will be achieved; the Company’s ability to strictly comply with federal,
state, local and regulatory agencies in the United States and other jurisdictions in which the Company operates, including
Australia, Switzerland and the Netherlands; the Company’s expectation that jurisdictions in which the Company operates,
including Australia, Switzerland and the Netherlands, have similar regulatory frameworks as the United States; the Company’s
expectations of the costs and timing to reach commercial production of drug products; the Company’s ability to secure
strategic partnerships with academic research institutions and larger pharmaceutical and biotechnology companies; the
Company’s continuation of strategic collaborations; MindMed’s strategy to acquire and develop new product candidates and
to enhance the safety and efficacy of existing product candidates; expectations with respect to existing and future corporate
alliances and licensing transactions with third parties, and the receipt and timing of any payments to be made by the Company or to
the Company in respect of such arrangements; the Company’s strategy with respect to the expansion and protection of its
intellectual property; and the Company’s evaluation of a potential listing of the Subordinate Voting Shares on the NASDAQ and
any regulatory approvals related thereto.

 

    1

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

All forward-looking statements reflect our beliefs
and assumptions based on information available at the time the assumption was made. These forward-looking statements are not based on
historical facts but rather on management’s expectations regarding future activities, results of operations, performance, future
capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects
and opportunities. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general
and specific, known and unknown, that contribute to the possibility that the predictions, forecasts, projections or other forward-looking
statements will not occur. In evaluating forward-looking statements, readers should specifically consider various factors, including
the risks outlined under the heading “Risk Factors” in this MD&A. Some of these risks and assumptions include, among
others substantial fluctuation of losses from quarter to quarter and year to year due to numerous external risk factors, and anticipation
that the Company will continue to incur significant losses in the future; uncertainty as to the Company’s ability to raise additional
funding to support operations; the Company’s ability to generate product revenue to maintain its operations without additional
funding; fluctuation of foreign exchange rates; the duration of COVID-19 and the extent of its economic and social impact; psychedelic
inspired medicines may never be approved by regulator and the risks associated with violating any laws and regulations; the risks associated
with the development of the Company’s product candidates which are at early stages of development; the difficulty of researching
and developing drugs that target the central nervous system; consequences of the Company’s failure to comply with health and data
protection laws and regulations; difficulty in establishing the Company’s reputation and its brand recognition; compliance with
environmental, health and safety laws and regulations; unfavourable publicity or consumer perception; unfavourable future clinical research
results; heightened scrutiny by the United States and Canadian authorities; inaccurate information posted on social media platforms;
the Company’s reliance on the success of its product candidates; reliance on third parties to plan, conduct and monitor MindMed’s
preclinical studies and clinical trials; unforeseen disruption in the process of drug development activities; reliance on third party
contract manufacturers to deliver quality clinical and preclinical materials; requirements regarding commercial scale and quality manufactured
products; the Company’s product candidates may fail to demonstrate safety and efficacy to the satisfaction of regulatory authorities
or may not otherwise produce positive results; delays in clinical testing; risks related to filing INDs to commence clinical trials and
to continue clinical trials if approved; the risks of delays and inability to complete clinical trials due to difficulties enrolling
patients; the Company’s inability to obtain regulatory approval; risks associated with not achieving the Company’s milestones;
competition from other biotechnology and pharmaceutical companies; the Company’s reliance on the capabilities and experience of
MindMed’s key executives and scientists and the resulting loss of any of these individuals; misconduct or improper activities of
the Company’s employees, contractors, consultants and agents; the Company’s ability to fully realize the benefits of its
acquisitions; the inability to meet revenue targets of the Company’s investments; negative results from clinical trials; the novelty
of psychedelics and the potential resulting lack of information; product liability claims; the Company’s ability to maintain product
liability insurance; risks related to the Company’s information technology systems; the outbreak of infectious disease; difficulty
of enforcing judgements; the Company’s limited operating history; the Company’s ability to adequately protect its intellectual
property and trade secrets; the Company’s ability to source and maintain licenses from third-party owners; changes in patent law;
the risk of patent-related litigation; risks related to sharing trade secrets; volatility of biopharmaceutical companies’ securities;
the Company’s lack of dividends; risks related to various tax matters; the uncertainty of positive returns on the Company’s
securities; risks related to the sales or conversion of the Company’s Subordinate Voting Shares; failure of the Company to maintain
its internal controls; liquidity of the Company’s securities; risks related to the public markets; risks related to additional
issuances and dilution of the Company’s securities; risks related to the Company’s Foreign Private Issuer status; risks related
to the Company’s limited number of shareholders; risks related to the Company’s capital structure; potential declines in
trading prices; risks related to published research and reports; the costs associated with maintain public listings; and other factors
beyond the Company’s control, all as further and more fully described under the heading “Risk Factors” in this MD&A. 

 

Although the forward-looking statements contained
in this MD&A are based upon what our management believes to be reasonable assumptions, we cannot assure readers that actual results
will be consistent with these forward-looking statements. Any forward-looking statements represent our estimates only as of the date of
this MD&A and should not be relied upon as representing our estimates as of any subsequent date. We undertake no obligation to update
any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect
the occurrence of unanticipated events, except as may be required by securities legislation.

 

THE ARRANGEMENT

 

Name Change, Consolidation and Change in Share Classes

 

Immediately prior to the closing of the reverse
takeover transaction and in connection with the Arrangement, Broadway: (a) consolidated its common shares on an eight-for-one basis
(the “Consolidation”), (b) changed its name to “Mind Medicine (MindMed) Inc.” (the “Name Change”),
(c) reclassified its post-Consolidation common shares as subordinate voting shares (the “Subordinate Voting Shares”)
and (d) created a new class of multiple voting shares (the “Multiple Voting Shares”) ((c) and (d) together,
the “Share Capital Amendment”). Broadway’s registered shareholders received replacement share certificates evidencing
the Consolidation, Name Change and Share Capital Amendment.

 

    2

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

Merger of the Company and MindMed US

 

Further to the terms of the Arrangement, MindMed
US merged with Broadway Delaware Subco Inc., a subsidiary of Broadway, under the corporate laws of Delaware. All outstanding Class B
common shares of MindMed US (“Class B Shares”), Class C common shares of MindMed US (“Class C Shares”),
and Class D common shares of MindMed US (“Class D Shares”) were exchanged for Class A common shares of MindMed
US (“Class A Shares”), immediately following which all Class A Shares were exchanged, on a one-for-one basis (the
 “Exchange Ratio”), for Subordinate Voting Shares or Multiple Voting Shares (in the case of Multiple Voting Shares the exchange
was on a one-for-one-hundred basis) of the Company (“Resulting Issuer Shares”) on a post-Consolidation basis. Such Class A
Shares were then cancelled pursuant to the Arrangement, and MindMed US issued 1,000 shares of common stock to the Company as consideration
for issuing the Resulting Issuer Shares to the (former) Broadway shareholders. Additionally, all convertible securities of Broadway were
exchanged for convertible securities of the “Resulting Issuer” (i.e., the Company) on the basis of the Exchange Ratio.

 

Concurrent financings

 

Immediately prior to the completion of the Arrangement,
MindMed US also completed its brokered and non-brokered private placement financings, in multiple tranches, of Class D Shares at
a price of CAD$0.33 per share (the “MindMed US Offering”). See “Description of Share Capital” section for more
details of the financing.

 

Neo Exchange listing

 

The Subordinate Voting Shares of the Company were
listed for trading on the Neo Exchange Inc. (“NEO Exchange”) on March 3, 2020 (“MMED”). The financing warrants
issued as part of a bought deal financing which closed on May 26, 2020 also trade on the NEO Exchange (“MMED.WT”), those
issued as part of a bought deal financing which closed on October 30, 2020 also trade on the NEO Exchange (“MMED.WS”),
and those issued as part of a bought deal financing which closed on December 11, 2020 also trade on the NEO Exchange (“MMED.WA”)
..

 

BUSINESS

 

MindMed is a clinical stage neuro-pharmaceutical
drug development company developing product candidates based on psychedelic substances through rigorous science and clinical trials. MindMed’s
mission is to discover, develop and deploy psychedelic inspired medicines and therapies intended to treat diseases in the areas of psychiatry,
neurology, addiction, pain and, potentially, others such as anxiety disorders, substance use disorders and withdrawal, and Adult Attention
Deficit Disorder. The Company defines its “psychedelic inspired medicines” program to include medicines which have the therapeutic
benefits of psychedelics without the hallucinogenic effects. The Company defines its therapies program to include other substances with
hallucinogenic properties administered in combination with therapy that may be performed in-clinic under the supervision of medical professionals
or in a similar therapeutic setting. Through MindMed’s drug development platform, the Company seeks to demonstrate the safety and
efficacy of psychedelic-based medicines for a continuum of mental illnesses and unmet medical needs. MindMed has operations in Switzerland,
Australia, the United States and Canada.

 

MindMed operates a distributed platform with
activities in Switzerland, Australia, the United States and Canada.

 

    3

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

The following diagram presents the inter-corporate
relationships among the Company and its subsidiaries as of the date hereof.

 

 

On February 16, 2021, MindMed Mergerco Inc.
was incorporated under the laws of the State of Delaware for the sole purpose of facilitating the merger with HealthMode, Inc. On
February 26, 2021, MindMed Mergerco Inc. merged with and into HealthMode, Inc. with the surviving corporation becoming a wholly-owned
subsidiary of the Company and changing its name to “HealthMode, Inc.”

 

MindMed
US is the Company’s main operating subsidiary, through which its three drug development programs are overseen: the Addiction Treatment
Program (as described below), the microdose lysergic acid diethylamide (LSD) program (as described below) and its LSD therapy program
for anxiety disorders, known as Project Lucy. The University Hospital Basel’s Liechti Lab (the “UHB Liechti Lab”)
collaboration with the Company and the Company’s other research and development efforts related to psychedelics are now supported
through the Company’s Swiss subsidiary, MindMed Discover GmbH. Additionally, MindMed Pty Ltd. is conducting a Phase 1 study on normal
healthy volunteers to determine the safety and tolerability of single ascending doses (SAD) and multiple ascending doses (MAD) of 18-MC
for its Addiction Treatment Program.

 

In furtherance of the Company’s mission
to address mental health and addiction, MindMed is conducting preclinical trials to develop a portfolio of product candidates and assemble
a compelling drug development pipeline of psychedelic inspired medicines and therapies for human clinical trials in accordance with the
regulations of the U.S. Food and Drug Administration (the “FDA”) and regulatory authorities in other jurisdictions where MindMed
or its affiliates operate.

 

MindMed utilizes a Discover, Develop and Deploy
process in order to advance psychedelic inspired medicines and therapies. MindMed defines Discover as being the non-clinical, pre-clinical,
and human clinical trials of psychedelic substances led by academic clinical investigators, discovery of new chemical entities and formulations
based on psychedelics, and the advancement of research and development on technologies that seek to demonstrate the safety and efficacy
of psychedelic inspired medicines and therapies. MindMed defines Develop as being drug development programs that are being advanced
from the Discover mandates and transitioned to be company-sponsored drug development programs through clinical registration trials. MindMed
defines Deploy as being MindMed’s commercialization mandates that will aim to partner with insurers, technology companies
and care providers to scale access to the Company’s medicines, if approved for marketing by regulatory authorities, to patients
in need. Each term is used throughout this management discussion and analysis.

 

MindMed’s
business is premised on a growing body of research supporting the use of psychedelics to treat a myriad of mental health problems. For
all product candidates, the Company will continue to proceed through research and development, and with marketing, if any of the product
candidates are ultimately approved, pursuant to the regulations of US FDA and ex-US regulatory authorities. This entails, among other
things, conducting clinical trials utilizing research scientists with extensive psychedelics backgrounds, using experienced clinical drug
development teams, producing and supplying drugs according to current Good Manufacturing Practices (“GMP”), and conducting
all trials and development in accordance with the regulations of the US FDA and ex-US regulatory authorities.

 

    4

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

This approach places MindMed in an industry in
which there are high barriers to entry, due to the need to conduct trials pursuant to applicable regulations, the time and costs required
to do so, and the related need to develop and protect intellectual property associated with drug development. Therefore, MindMed’s
ability to build a compelling drug portfolio and pipeline and to raise the financing necessary for its operations are key to its success.

 

Discover

 

In the Discover projects, the Company conducts
R&D in collaboration with the UHB Liechti Lab on various psychedelics and new potential therapeutic programs based on a multi-year,
exclusive collaboration agreement with the UHB Liechti Lab signed on April 1, 2020. The agreement first covered LSD, but has since
been expanded to incorporate other compounds and psychedelic substances such as methylenedioxy-methylamphetamine (MDMA), dimethyltryptamine
(DMT), MDMA-LSD and psilocybin. These R&D clinical trials, intellectual property and technologies may ultimately be translated to
commercial development programs. The Company is continually evaluating the acquisition of agreements and studies focusing on the medical
benefits of other psychedelic substances and new chemical entities similar to known psychedelic substances to advance its R&D efforts.

 

On November 24, 2020, the Company announced
that as part of its Discover projects, it is establishing a digital medicine division known as “Albert” (“Albert”).
Albert is in the process of assembling and recruiting a team of technologists, therapists, and clinical drug development experts to help
the Company research, develop and build an integrated technical platform and comprehensive toolset aimed at delivering psychedelic inspired
medicines and therapies combined with digital therapeutics. Digital therapeutics are defined as evidence-based therapeutic interventions
for patients to prevent, manage, or treat a mental disorder or disease. The Company will be evaluating the potential to pair digital tools,
which may include wearables and the latest in machine learning, with psychedelic assisted therapies in order to give healthcare providers
the ability to optimize and better understand the patient journey and therapeutic outcomes from pre-care through after-care. Recent advancements
in digital therapeutics have the potential to enable a real time assessment of efficacy in both clinical trials and real world settings
which can lead to a more robust understanding of the value of a treatment and long-term impact on patient outcomes.

 

Develop

 

Currently,
the Company’s commercial development pipeline consists of agreements and studies relating to 18-MC and LSD. The
Company’s immediate commercial development priorities are to address the opioid crisis and other substance use disorders by
developing a non-hallucinogenic version of the psychedelic ibogaine, conduct clinical trials of LSD microdosing for adult ADHD, and
to conduct clinical trials of LSD therapy for anxiety disorders.

 

Deploy

 

The
Company’s strategy is currently focused on the discovery and development of product candidates based on psychedelic substances,
but the Company will ultimately seek to commercialize and deploy its psychedelic inspired medicines and therapies to patients in need.
As a result, the Company has recently entered into a funding arrangement with NYU Langone Health to establish the NYU Langone Training
Program to help the Company understand and prepare for the future Deploy phase of its business plan.

 

Projects That Have Not Yet Generated Revenue

 

The Company currently has six significant projects,
none of which have yet generated revenue, as well as a Deploy program that is not intended to generate revenue:

 

		a.	developing a non-hallucinogenic version of the psychedelic ibogaine to address the opioid crisis and other substance use disorders,
                                                              known as “Project Layla”;

 

		b.	developing clinical trials of LSD therapy for anxiety disorders (Project Lucy);

 

		c.	running a clinical trial of LSD microdosing for adult ADHD, known as “Project Flow”;

 

		d.	the ongoing collaboration with the UHB Liechti Lab;

 

    5

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

		e.	project Albert to combine digital therapeutics with psychedelic inspired medicines and therapies; and

 

		f.	the NYU Langone Training Program.

 

Develop Projects

 

Addiction Treatment Program

 

The Company is investigating the use of
hallucinogenic and non-hallucinogenic treatments for addiction, which it calls its Addiction Treatment Program and which involved
the consideration of various initiatives. Included in these initiatives is the development of Project Layla, which is focused on
opioid withdrawal treatment, the treatment of opioid use disorder, and the treatment of other substance use disorders, in respect of
which the Company is currently conducting a Phase 1 trial evaluating 18-MC, a non-hallucinogenic synthetic derivative of the
psychedelic substance ibogaine. The preliminary data from this trial suggests that 18-MC is safe and well tolerated at the doses
tested to date, and no serious adverse events have been reported. In Study MMED003, a Phase 1 clinical trial being conducted at a
single clinical research site in Perth, Australia, a total of 55 subjects have been administered 18-MC at doses ranging from 4 to
150 mg BID (for one day; n=5 per arm) and 2 to10 mg BID (for up to 7 days, n=5 per arm). Based on the safety profile observed in
this study to date, the study’s Safety Review Committee has determined to continue dose escalation in the study to gather data
from subjects administered higher doses of 18-MC for one or seven days. Once that additional data has been reviewed, MindMed plans
to initiate a Phase 2a proof of concept study to evaluate 18-MC’s effectiveness in mitigating the symptoms of opioid
withdrawal in patients undergoing opioid detoxification and assess the safety and tolerability of 18-MC in this patient population.
The Company previously anticipated that the Phase 2a proof of concept study would be initiated in 2020 or early 2021. The favorable
safety profile has been observed even though early findings from this study indicated that plasma levels of 18-MC were greater than
expected. As a result, the Company has determined to take additional time to evaluate the data from the Phase 1 trial, and the
Company now anticipates that the Phase 2a study will be initiated in the second half of 2021 or later. A meeting with the FDA has
been confirmed for Q2 2021 to continue discussions regarding the 18-MC clinical development plan. As part of Project Layla, MindMed
is also contemplating initiating a Phase 2 study of 18-MC for opioid use disorder and other substance use disorders after the Phase
2a for opioid withdrawal commences.

 

A
Phase 3 clinical trial for opioid withdrawal, opioid use disorder and other substance use disorders is projected to commence, at the
very earliest, in 2023, subject to statistically significant results and findings from the Phase 2 clinical trials and input
from the FDA. Findings from the Phase 2 trials could greatly impact timelines and future capital requirements for the Addiction
Treatment Program. In addition, the Company may need to conduct additional Phase 2 trials or additional Phase 1 studies to progress
Project Layla, which may impact timelines and required capital. The above also assumes that the Company intends to apply for
 “Breakthrough Therapy Designation” from the FDA for Project Layla, which may or may not positively impact the projected
timelines referred to above if granted by the FDA. MindMed may elect to add additional drug development projects that complement the
Addiction Treatment Program, including hallucinogenic treatments for addiction, but none have been selected for development at this
time.

 

Project Lucy

 

As part of MindMed’s decision to add a therapy
for anxiety disorders to its clinical development pipeline, MindMed has established Project Lucy. In December 2020, the Company successfully
completed a pre-IND meeting with the FDA for the treatment of an anxiety disorder with LSD. The Company intends to submit an IND with
the FDA in the second half of 2021, with a Phase 2b clinical trial evaluating experiential doses of LSD in an anxiety disorder. MindMed is assembling
and using data from its data acquisition from the UHB Liechti Lab to help support its IND filing to the FDA.

 

As a result of the Company’s data acquisition
from the UHB Liechti Lab, MindMed received the data and worldwide rights to an ongoing Phase 2 academic trial in respect of LSD for anxiety
administered by Professor Dr. Matthias Liechti and a psychedelic therapy expert, Dr. Peter Gasser. Dr. Gasser was appointed
as the Clinical Advisor for Project Lucy in the second half of 2021. The data and knowhow will help build MindMed’s understanding of LSD’s
uses for anxiety disorders and its potential as a medication for serious mental health conditions.

 

On November 2, 2020, the Company announced
that, in collaboration with the UHB Liechti Lab, it has completed an academic Phase 1 study measuring LSD dose-dependent induced subjective
responses at microdoses (25 μg) up to experiential doses (200 μg) of LSD. The academic study provided relevant data to support
Project Lucy as the Company identifies optimal dose levels of LSD to test in the intended Phase 2 LSD anxiety trial referenced above.

 

    6

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

Project Flow

 

The
Company is preparing a clinical trial of LSD microdosing for adult ADHD (Project Flow). A Phase 2a proof of concept trial for the microdose
LSD program has received regulatory approvals from the Netherlands and Switzerland. The Company has appointed two principal investigators
and signed clinical trial agreements with the UHB Liechti Lab and Maastricht University. After MindMed’s clinical team assesses
the results from the Phase 2a proof of concept clinical trial, the Company will determine the best future strategy for additional clinical
trials based on these findings and future milestones for the project. To the knowledge of the Company and management, this is the first
ever Phase 2a clinical trial of microdosing LSD for commercial drug development. It is extremely complex to estimate what future trials
and studies will be required until a proof of concept of the technology has been established in the current trial being prepared by the
Company. At such time, the Company will be in a better position to anticipate the needed capital to advance the microdose LSD program.
The Company’s budgeted Phase 2a costs for the proof of concept trial are currently anticipated to be between $3,000 and $4,000,
the results of which will inform future budgets of Phase 2 trials. The Company previously anticipated that the trial would begin as early
as Q4 2020 or Q1 2021. However, the Company will be required to use GMP-compliant LSD, and as a result of the additional time required
to formulate GMP-compliant LSD, the Company now anticipates that the trial will run over two years from Q3 2021 to Q3 2023.

 

Microdose LSD Program

 

On January 12, 2021, the Company announced
an LSD microdosing study evaluating the potential benefits of LSD microdosing. Specifically, the study will be a randomized placebo-controlled
study evaluating the effects of daytime and evening administration of low doses of LSD on cognitive performance, sleep quality, mood,
neuroplasticity markers, emotion regulation, quality of life, and immune system response. The study will provide an additional research
pathway for MindMed’s psychedelic microdosing division and will immediately integrate with MindMed’s plans in digital therapeutics
through its newly formed Albert unit for digital medicine. The new study will be conducted in collaboration with Dr. Kim Kuypers
of Maastricht University in the Netherlands, a global, leading authority on the microdosing of psychedelics. In order to advance the scientific
understanding of microdosing for clinical purposes, the randomized placebo-controlled study will specifically measure the effects of microdoses
of LSD on neuroplasticity markers such as brain-derived neurotrophic factor (BDNF) plasma levels, as well as on various sleep measures,
mood, cognitive performance, emotion regulation, quality of life, and immune system response. MindMed is integrating innovative digital
tracking devices and software into the study to better assess LSD’s effects on various digital clinical markers on the human body.

 

Discover Projects

 

UHB Liechti Lab Initiatives

 

Exclusive License to Clinical
Trials of LSD, MDMA, DMT, and Psilocybin and UHB Liechti Lab R&D Collaboration

 

On April 1, 2020, the Company announced that
it had signed a multi-year, exclusive collaboration with the UHB Liechti Lab, the world-leading psychedelics pharmacology and clinical
research group at the UHB Liechti Lab in Basel, Switzerland. Under the agreement, MindMed gained exclusive worldwide rights to data, compounds,
and patent rights associated with the UHB Liechti Lab’s research with LSD and other psychedelic compounds, including data from preclinical
studies and completed or ongoing LSD and MDMA clinical trials. MindMed has begun working with the UHB Liechti Lab to file patents for
the data and clinical trials it has generated over a 10-year period and from current ongoing trials.

 

MindMed will support ongoing and planned R&D
clinical trials and commercial development trials under the direction of Professor Dr. Liechti. Professor Dr. Liechti will have
primary responsibility for the development of the selected compounds, and MindMed will provide research funding and milestone payments
in return for the exclusive license to existing and future data and intellectual property generated from clinical trials. The UHB Liechti
Lab will receive royalties and development revenue on any products marketed through the collaboration.

 

MDMA and DMT Research and
Development

 

MindMed recently added the psychedelic compound
MDMA to its R&D pipeline, with research being led by Professor Dr. Liechti. After starting the UHB Liechti Lab, over the past
ten years Professor Dr. Liechti has led multiple clinical trials of the safety profile of MDMA and how it interacts with the human
body. The cumulative data from the work done in the UHB Liechti Lab will enable MindMed to design clinical trials and form a strategy
for MDMA as part of its portfolio.

 

    7

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

MindMed has committed to fund future R&D of
new psychedelic therapies being pursued by the UHB Liechti Lab with the intention to create next-generation psychedelic inspired medicines
that incorporate MDMA as a component of these therapies. The UHB Liechti Lab and MindMed plan to explore combination treatments of LSD
and MDMA to optimize the subjective effect profiles and potentially join the benefits of both psychedelics in various treatment paradigms.
A combined MDMA LSD randomized placebo controlled Phase 1 trial was initiated in Q1 2021.

 

Concurrently, MindMed will pursue N,N-Dimethyltryptamine
(DMT), the principally active ingredient in ayahuasca. MindMed is providing startup funding for a Phase 1 clinical trial testing various
intravenous dosing regimens of DMT, expected to begin in Q2 2021. DMT is a naturally occurring psychedelic substance that causes a rapid
onset and offset of action compared to similar psychedelic substances such as psilocybin or LSD. When administered as an ayahuasca brew,
natural substances are mixed with DMT to prolong its experiential effects and slow the metabolism in the human body. Through this Phase
1 clinical trial, MindMed and the UHB Liechti Lab are exploring how DMT can achieve experiential effects similar to ayahuasca by testing
a more controlled intravenous dosing method. The Phase 1 study is a randomized, double blind, placebo-controlled, 5-period crossover trial
in 30 healthy volunteers who will undergo five sessions with different DMT doses.

 

DMT is rapidly metabolized as it enters the body
if taken orally and therefore it has a very short duration of action. In contrast, through a continuous intravenous perfusion application
the effect of DMT is longer and can be stopped rapidly. In order to potentially induce a stable DMT experience lasting 1-2 hours, various
intravenous dosing regimens including a starting dose and then a maintenance dose will be evaluated in the Phase 1 clinical trial. This
intravenous administration may also allow therapists to induce and to end an experiential state safely and more quickly, as required.

 

The human safety data and associated knowhow gathered
in this Phase 1 clinical trial will better enable MindMed’s clinical team to design future potential drug development programs based
on DMT sessions. Currently, no study has validly determined the elimination half-life of DMT and other pharmacokinetic parameters and
there is limited known data on dosing regimens of pure DMT. This Phase 1 double blind placebo controlled 5-period crossover design study
will provide a well-controlled study setting to illuminate these shortcomings in the current clinical understanding of DMT and pave the
way for future Phase 2a proof of concept efficacy studies in various indications.

 

Neutralizer Technology

 

In collaboration with the UHB Liechti Lab, MindMed
filed a patent application in the United States (preserving all worldwide rights) for neutralizer technology intended to shorten and
stop the hallucinogenic effects of using LSD during a therapy session. This discovery, when further developed, may act as the ‘off-switch’
to certain hallucinogenic effects. The invention may help reduce the acute effects of a psychedelic drug and help shorten the hallucinogenic
effects when required by a patient or medical professional. One of the many fears and stigmas associated with psychedelics are rare occurrences
of negative hallucinogenic effects, colloquially referred to as ‘bad trips’. MindMed is seeking to equip therapists and other
medical professionals with the resources and technology to better control the effects of dosing LSD in a clinical setting to improve
the patient experience and outcomes. This would pave the way for greater therapeutic applications of LSD and shorter-acting psychedelic
therapy treatments. MindMed believes this technology, when further developed, may one day be marketed as an added feature to shorten
or stop a therapy session if the patient is not comfortable.

 

MindMed is working in collaboration with the UHB
Liechti Lab on a Phase 1 double-blind, placebo-controlled, random-order 2-period crossover design clinical trial evaluating the effect
of ketanserin on the acute response to LSD in healthy subjects after LSD administration. The study is being conducted at the UHB Liechti
Lab and is expected to be completed during the 2021 calendar year. This study will support the patent application that was filed in 2020
(preserving all worldwide rights) for a neutralizer technology intended to shorten and stop the effects of an LSD trip during a therapy
session.

 

    8

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

Personalized Medicine Technology

 

MindMed, in collaboration with UHB Liechti Lab,
is also in the process of researching and developing technologies and analytics that will seek to personalize psychedelic therapy experiences
for a specific patient. The technology aims to optimize the dosing of MDMA, LSD and other psychedelics based on individual characteristics
including age, sex, pharmacogenetics, personality traits, states of mood, metabolic markers and therapeutic drug monitoring. A considerable
problem for doctors, clinical researchers, and therapists is to understand and predict optimal doses of medicines based on psychedelic
substances for patients. Through its clinical research, the UHB Liechti Lab is identifying ways to predict and optimize the amount of
a psychedelic dose and dosing regimen for therapy, which may be utilized with MindMed’s product candidates. To assemble a patient’s
personalized dosing regimen and therapy session, MindMed and the UHB Liechti Lab’s analytics method is being developed to aggregate
multiple data and criteria of patients in a pre-dose screening and analysis process. MindMed intends to apply this personalized medicine
approach to its development of psychedelic-assisted therapies for patients suffering from mental health and addiction issues. Three patent
applications have been filed covering MDMA dose optimization and LSD dose response. MindMed has received the exclusive rights from the
UHB Liechti Lab to commercialize the outcome of these patent applications on a global basis. Further, biomarkers such as BDNF are assessed
and evaluated to potentially be used as predictors of markers of positive effects on neuroplasticity and therapeutic response.

 

Cluster Headache Treatment

 

MindMed is supporting and collaborating on a Phase
2 clinical trial evaluating LSD for the treatment of cluster headaches at the UHB Liechti Lab. Cluster headaches are a relatively uncommon
primary headache disorder that is one of the trigeminal autonomic cephalgias; they are considered to be among the most severe forms of
pain. The Phase 2 trial began recruiting patients in early Q1 2019 and has commenced treating patients with LSD. Professor Dr. Liechti
is serving as principal investigator of the clinical trial. The UHB Liechti Lab and MindMed intend to learn how they can make the administration
of LSD more targeted for cluster headache patients through this Phase 2 trial and future clinical trials. As part of the collaboration
with the UHB Liechti Lab, MindMed gained exclusive, global use to all data and intellectual property generated in this Phase 2 trial of
LSD for cluster headaches.

 

Partnership with Swiss
Psychedelic Drug Discovery Startup MindShift Compounds AG

 

MindMed has entered into a partnership with Swiss
start-up, MindShift Compounds AG, to develop and patent next-generation psychedelic compounds with psychedelic or empathogenic properties.
As part of this partnership, MindMed and MindShift Compounds AG have agreed to develop next-generation psychedelic and empathogenic substances
together. The first initial compounds have already been synthesized by MindShift Compounds AG and related patent applications were filed
by MindMed. MindMed plans to begin first-in-human Phase 1 clinical trials as early as the first quarter of 2022 through its existing clinical
trial platform for psychedelic and empathogenic compounds in Switzerland. The partnership on these initial targets will expand MindMed’s
current, well-established clinical pipeline with additional backup and expansion compounds with similar and potentially improved therapeutic
properties. The related synthesis intellectual property and pharmaceutical technology will be owned outright by MindMed, and MindShift
Compounds AG will exclusively provide to MindMed all intellectual property related to the new psychedelic compounds. MindMed plans to
work with the experienced drug discovery team at MindShift Compounds AG to further broadly cover preclinical psychedelics research into
novel compounds and expects to continue to file patent applications on novel substance matters, production innovations, and later clinical
applications.

 

Deploy Projects

 

Albert and HealthMode

 

On November 24, 2020, the Company announced
that it was establishing a digital medicine division known as “Albert”. Albert aims to have a team of technologists, therapists,
and clinical drug development experts to help the Company research, develop and build an integrated technical platform and comprehensive
toolset aimed at delivering psychedelic inspired medicines and therapies combined with digital therapeutics. Digital therapeutics are
defined as evidence-based therapeutic interventions for patients to prevent, manage, or treat a mental disorder or disease. The potential
to pair digital tools, which may include wearables and the latest in machine learning, with psychedelic assisted therapies, can give healthcare
providers the ability to optimize and better understand the patient journey and therapeutic outcomes from pre-care through after-care.
Recent advancements in digital therapeutics have the potential to enable a real time assessment of efficacy in both clinical trials and
real-world settings, which can lead to a more robust understanding of the value of a treatment and long-term impact on patient outcomes.

 

In February 2021, MindMed completed the acquisition
of HealthMode to build out the Albert division. HealthMode is a digital medicine and therapeutics startup that uses Artificial Intelligence
(AI)-enabled digital measurement to increase the precision and speed of clinical research and patient monitoring. With the acquisition,
MindMed has gained access to HealthMode’s intellectual property, platforms for clinical drug trials, and its entire twenty-four-person
digital medicine team. MindMed will incorporate HealthMode’s machine learning engineering, product development, and operations employees
based in Silicon Valley, New York City, Bratislava and Prague into Albert.

 

    9

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

NYU Langone Health Psychedelic
Medicine Clinical Training Program

 

The Company has recently entered into a funding
arrangement with NYU Langone Health to establish the NYU Langone Training Program to help the Company understand and prepare for the future
Deploy phase of its business plan.

 

On October 6, 2020, the Company announced a commitment
of US$5 million over a five-year period to found and launch a clinical training program focused on psychedelic assisted therapies
and psychedelic inspired medicines at NYU Langone Health, one of the United States premier academic medical centers. The NYU Langone Training
Program is the first step in a larger initiative to establish a Center for Psychedelic Medicine at NYU Langone Health. The NYU Langone
training program is intended to train additional clinical researchers in psychedelic medicines. In addition, the Company hopes to work
with NYU Langone and other academic institutions as it prepares for the future Deploy phase of its business plan that will inevitably
require training large numbers of medical personnel including psychiatrists to administer psychedelic assisted therapies at scale in the
United States. NYU Langone Health will have full and free discretion in using the funds for the development and conduct of the training
program and operations of the Center for Psychedelic Medicine. The launch of the Center for Psychedelic Medicine at NYU Langone Health
is still subject to additional funding from other partners and parties. It is not anticipated that the Company will generate future revenue
from this project.

 

LEGAL PROCEEDINGS

 

To our knowledge, there have not been any legal
or arbitration proceedings, including those relating to bankruptcy, receivership or similar proceedings, those involving any third party,
and governmental proceedings pending or known to be contemplated, which may have, or have had in the recent past, significant effect on
our financial position or profitability.

 

Also, to our knowledge, there have been no material
proceedings in which any director, any member of senior management, or any of our affiliates is either a party adverse to us or has a
material interest adverse to us.

 

RESULTS OF OPERATIONS

 

For the Fourth Quarter of 2020

 

Overview

 

Since inception, we have incurred losses while
advancing the research and development of our products and processes. Comprehensive loss for the three months ended December 31,
2020 was $13,642,000. The loss was due primarily to general and administrative expenses of $2,987,000 research and development costs of
$4,912,000 and share-based payments of $6,518,000.

 

During the period ended December 31, 2020,
MindMed continued to enhance the resources it requires to build its pipeline of opportunities. This included adding personnel and contract
resources and ramping up the nonclinical aspects of our activities. In addition, considerable effort was directed towards employing a
successful financing strategy.

 

Research and Development

 

To
date, our resources were focused primarily on the development of our 18-MC and LSD programs and the commencement of related clinical activities.
We have commenced clinical studies and have funded data and study acquisitions and have begun to acquire materials required to supply
our studies.

 

    10

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

Since
inception to December 31, 2020, the Company has expended approximately $17,436 on research and development, including consulting
and licensing fees, manufacturing costs, clinical research and regulatory data and study acquisition costs, as follows:

 

 

	Costs	 	October to
 December 31,
 2020(1)
 (US$)
	 	 	July to 
 September 30, 
 2020(1)
 (US$)
	 	 	April to
 June 30, 
 2020(1)
 (US$)
	 	 	January to
 March 31,
 2020(1)
 (US$)
	 	 	Inception to
 December 31,
 2019(1)
 (US$)
	 	 	Total(1)
 (US$)
	 
	Payroll, consulting and benefits	 	 	842	 	 	 	1,011	 	 	 	627	 	 	 	672	 	 	 	801	 	 	 	3,953	 
	Licensing fees	 	 	-	 	 	 	200	 	 	 	-	 	 	 	500	 	 	 	727	 	 	 	1,427	 
	Manufacturing costs	 	 	2,161	 	 	 	782	 	 	 	691	 	 	 	207	 	 	 	333	 	 	 	4,174	 
	Clinical research and regulatory expenses	 	 	1,323	 	 	 	1,858	 	 	 	930	 	 	 	5	 	 	 	115	 	 	 	4,231	 
	Data and study acquisition cost	 	 	346	 	 	 	1,219	 	 	 	690	 	 	 	584	 	 	 	-	 	 	 	2,839	 
	Other	 	 	240	 	 	 	272	 	 	 	83	 	 	 	143	 	 	 	73	 	 	 	812	 
	Total	 	 	4,912	 	 	 	5,342	 	 	 	3,021	 	 	 	2,112	 	 	 	2,049	 	 	 	17,436	 

 

Note:

 

		(1)	All dollar amounts are in thousands.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

The table below describes the next stage of each
of the Company’s material projects, as well as the anticipated timing and costs required to complete such stage.

 

	Project	 	Stage of Project	 	Expected 

Timing to

Complete

Stage	 	
    Expected Costs

    to Complete

    Stage(1)

    (US$)
	 	 	
    Total

    Proceeds

    Allocated(1)(2)

    (US$)
	 
	Discover	 	UHB

Liechti Lab

clinical

trials	 	Phase 1 randomized placebo controlled trial for MDMA and LSD	 	Q1 2021 to Q3

2022	 	 	740	 	 	 	8,780	(3)
	 	 	Phase 1 clinical trial testing various intravenous dosing regimens of DMT	 	Q1 2021 to Q3

2022	 	 	860	 	 	 
	 	 	Phase 1 Development of a neutralizer technology intended to shorten and stop the hallucinogenic effects of using LSD during a therapy session	 	Q4 2020 to Q2

2022	 	 	460	 	 	 
	 	 	Phase 1 LSD bioequivalence trial	 	Q1 2021 to Q4

2022	 	 	440	 	 	 
	 	 	Phase 1 psilocybin trial	 	Q3 2019 to Q2

2021	 	 	540	 	 	 
	 	 	Phase 2 clinical trial evaluating LSD for the treatment of cluster headaches	 	Q1 2019 to Q4 

2023	 	 	800	 	 	 
	 	Albert	 	Beginning stages of assembling a team of technologists, therapists, and clinical drug development experts	 	To be

determined(4)	 	 	To be

determined	(4)	 	 	7,831	 
	Develop	 	Project

 Layla	 	Phase 1 trial evaluating 18-MC	 	Q2 2020 to Q2

2021	 	 	4,000	 	 	 	5,594	(3)
	 	 	Phase 2a proof of concept study evaluating 18-MC	 	Q4 2021 to Q2

2022	 	 	5,600	 	 	 	 	 
	 	Project

 Lucy	 	Phase 2b clinical trial evaluating experiential doses of LSD in an anxiety disorder	 	Q4 2021 to Q4

2023	 	 	15,000	 	 	 	4,977	 
	 	Microdose

 LSD

 Program	 	Phase 2a proof of concept trial for the Microdose LSD Program	 	Q3 2021 to Q3 

2023	 	 	3,000 - 4,000	 	 	 	3,084	(3)
	Deploy	 	NYU Langone Health	 	Investment to found and launch a clinical training program focused on psychedelic assisted therapies and psychedelic inspired medicines	 	5 years	 	 	5,000	 	 	 	N/A	(4)

 

Notes:

 

		(2)	All dollar amounts are in thousands.

		(3)	The “Total Proceeds Allocated” column in the table above sets out the aggregate amounts allocated
to each project in the prospectuses related to the Company’s offerings completed on May 26, 2020 (the “May Offering”),
October 30, 2020 (the “October Offering”) and December 11, 2020 (the “December Offering”).
While the Company anticipates that the amounts described in the “Expected Costs to Complete Stage” column above will be used
to complete the next stage of each project, the nature, timing and costs related to future stages of each project are difficult to predict,
and as such the amounts above are subject to change. The amounts allocated to each project in the applicable prospectus has been converted
to United States dollars based on (i) the May 30, 2020 Bank of Canada exchange rate of US$1.00 = C$1.3785 in respect of the
May Offering; (ii) the October 30, 2020 Bank of Canada exchange rate of US$1.00 = C$1.3318 in respect of the October Offering;
and (iii) the December 11, 2020 Bank of Canada exchange rate of US$1.00 = C$1.2769 in respect of the December Offering.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

		(4)	In the prospectuses related to the May Offering, the October Offering and the December Offering,
the Company has also allocated an aggregate of $8,169 towards the chemistry, manufacturing and control of substances such as LSD and 18-MC,
among others.

		(5)	As Albert is still in its inception stages, the Company is not able to accurately predict a timeline or
costs associated with the beginning stages of assembling its team of technologists, therapists, and clinical drug development experts.
The Company is evaluating a full budget and strategy for Albert and will make announcements related thereto through is regular continuous
and timely disclosure once this process is complete and certain key hires and personnel are in place. The Company anticipates that in
2021 it will undertake a product ideation phase with a digital therapeutic development budget of approximately $7,000 to hire necessary
personnel and leadership for the division and initiate new digital therapeutic projects.

		(6)	The Company has not specifically allocated proceeds from the Prior Offerings towards the NYU Langone Health
program. The Company expects that the costs of such program attributable to the Company will be funded from amounts the Company has previously
allocated towards general or other working capital purposes in respect of the Prior Offerings.

 

The allocation of capital towards the Company’s
ongoing projects and programs is largely dependent on the success, or difficulties encountered, in any particular portion of the process
and therefore the time involved in completing it; in turn the time and costs associated with completing each step are highly dependent
on the incremental results of each step and the results of other programs, and the Company’s need to be flexible to rapidly reallocate
capital to projects whose results show the greatest potential. As such, it is difficult for the Company to anticipate the timing and costs
associated with taking the projects to their next planned stage, and the Company cannot make assurances that the foregoing estimates will
prove to be accurate, as actual results and future events could differ materially from those anticipated. Accordingly, investors are cautioned
not to put undue reliance on the foregoing estimates.

 

Additionally, identifying the timing and costs
of such projects beyond their immediate next steps go to the core differentiating factors with respect to the Company and its competitors.
The disclosure of prospective costs and timing other than as already disclosed by the Company would negatively impact shareholder value
and undermine the Company’s proprietary technology. In keeping with pharmaceutical industry practice, it is the Company’s
policy to disclose these details in conjunction with our financial statements, and to publicly disclose published patent applications,
published scientific papers, scientific symposia and the attainment of key milestones only. In addition, the premature disclosure of proprietary
data would have a material and adverse effect on the Company’s patent and other intellectual property rights and could result in
the breach of confidentiality obligations.

 

General and Administrative

 

Components of general and administrative expenses
were as follows:

 

	 	 	Q4-2020(1)
 (US$)
	 	 	Q3-2020(1)
 (US$)
	 	 	Q2-2020(1)
 (US$)
	 	 	Q1-2020(1)
 (US$)
	 	 	May 30 to

 December 31,

 2019(1)
 (US$)
	 
	Payroll, consulting fees and benefits	 	 	937	 	 	 	717	 	 	 	308	 	 	 	741	 	 	 	1,174	 
	Legal fees	 	 	408	 	 	 	144	 	 	 	231	 	 	 	31	 	 	 	1,045	 
	Accounting and audit	 	 	75	 	 	 	98	 	 	 	65	 	 	 	63	 	 	 	312	 
	Marketing and investor relations	 	 	782	 	 	 	601	 	 	 	686	 	 	 	312	 	 	 	185	 
	Other	 	 	785	 	 	 	19	 	 	 	263	 	 	 	424	 	 	 	389	 
	Total	 	 	2,987	 	 	 	1,579	 	 	 	1,553	 	 	 	1,571	 	 	 	3,105	 

 

Note:

 

		(1)	All dollar amounts are in thousands.

 

Finance income and costs and foreign exchange gains and losses

 

Share-based compensation of $6,518,000 for the
quarter resulted from stock options provision ($886,000), from a share-based settlement of a claim ($5,570,000) and from a loan made to
a director of the Company to purchase shares of the Company ($62,000). The loan has been accounted for as an option plan since the Company
does not have full recourse to the outstanding loan balance.

 

Finance income for the period ended December 31,
2020 of $2,000 consisted of interest income from the shareholder loan.

 

    13

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

During the quarter ended December 31, 2020,
we recorded a net foreign currency gain of $639,000. The net foreign currency gain in the current period reflected a strengthening of
the Canadian dollar versus the U.S. dollar while holding a portion of the cash received from financing in Canadian currency. The majority
of the cash held has been converted to US dollars.

 

Prior use of Proceeds

 

MindMed US Offering

 

The table below describes the differences between
the Company’s anticipated use of the net proceeds from the MindMed US Offering completed by MindMed US in three tranches between
December 2019 and February 2020, as disclosed in the management information circular (the “Circular”) of the Company
(then called Broadway Gold Mining Ltd.) dated December 29, 2019, and the Company’s actual use of the net proceeds for the MindMed
US Offering as of December 31, 2020:

 

	Component	 	Original
 Planned Use of
 Proceeds(1)
 (C$)
	 	 	Revised
 Planned Use of
 Proceeds(1)(2)
 (C$)
	 	 	Revised 
 Planned Use of
 Proceeds(1)(3)
 (US$)	 	 	Actual Use of
 Proceeds(1)
 (US$)
	 	 	Difference in
 Amounts(1)
 (US$)
	 
	Research and development	 	 	11,500	 	 	 	19,521	 	 	 	14,579	 	 	 	12,559	 	 	 	2,020	 
	General and administration costs	 	 	4,600	 	 	 	7,808	 	 	 	5,832	 	 	 	7,830	 	 	 	(1,999	)
	Working capital	 	 	482	 	 	 	819	 	 	 	611	 	 	 	632	 	 	 	(21	)
	Total	 	 	16,582	 	 	 	28,148	 	 	 	21,022	 	 	 	21,022	 	 	 	Nil	 

 

Notes:

 

		(2)	All dollar amounts are in thousands.

		(3)	At the time of the Circular, the Company anticipated that the proceeds of the MindMed US Offering would
be $16,582. Upon closing of the MindMed US Offering, the actual proceeds were $28,808. As a result of holding a portion of the remaining
cash in Canadian dollars, there was an unrealized foreign exchange loss of $660, reducing the proceeds of $28,808 to $28,148 in the above
table. The planned use of proceeds as disclosed in the Circular has been revised on a pro rata basis in the above table to account for
the increased actual proceeds realized from the MindMed US Offering.

		(4)	Revised use of proceeds converted to United States dollars based on the February 27, 2020 Bank of
Canada exchange rate of US$1.00 = C$1.339.

 

The actual use of proceeds from the MindMed US
Offering differed in certain respects from the anticipated use of proceeds at the time of the Circular. These differences were caused
by a number of factors, including that the actual proceeds received from the MindMed US Offering were approximately 70% higher than originally
anticipated. Had the anticipated proceeds from the MindMed US Offering at the time of Circular been as high as the actual proceeds, the
Company’s estimation of the allocation of proceeds to be put towards research and development versus general and administration
costs would likely have been different at the time, as the original planned use of proceeds was not necessarily meant to scale on a one-to-one
basis with additional proceeds. Additionally, since the time of the MindMed US Offering and before December 31, 2020, the Company
completed the May Offering, the October Offering and the December Offering. The costs related to such offerings also resulted
in increased general and administration costs than were anticipated at the time of the Circular.

 

    14

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

May Offering

 

The table below describes the differences between
the Company’s anticipated use of the net proceeds from the May Offering as disclosed in the final prospectus of the Company
dated May 21, 2020, and the Company’s actual use of the net proceeds for the May Offering as of December 31, 2020:

 

	Component	 	Planned Use of
 Proceeds(1) 
 (C$)	 	 	Planned Use of
 Proceeds(1)(2)
 (US$)	 	 	Actual Use of
 Proceeds(1) 
 (US$)	 	 	Difference in
 Amounts(1)
 (US$)	 
	Funding the Company’s collaboration with University Hospital Basel’s Liechti Laboratory, including:	 	 	7,200	 	 	 	5,223	 	 	 	3,368	 	 	 	1,855	 
	License fees	 	 	1,000	 	 	 	725	 	 	 	700	 	 	 	25	 
	Financial support for studies	 	 	3,000	 	 	 	2,176	 	 	 	346	 	 	 	1,830	 
	Clinical trials	 	 	2,500	 	 	 	1,814	 	 	 	1,814	 	 	 	Nil	 
	Project management and support	 	 	700	 	 	 	508	 	 	 	508	 	 	 	Nil	 
	Other general corporate and working capital, including:	 	 	3,110	 	 	 	2,256	 	 	 	998	 	 	 	1,258	 
	Management and contract personnel costs	 	 	2,200	 	 	 	1,596	 	 	 	522	 	 	 	1,074	 
	Professional fees	 	 	300	 	 	 	218	 	 	 	34	 	 	 	184	 
	Marketing	 	 	400	 	 	 	290	 	 	 	290	 	 	 	Nil	 
	Other	 	 	210	 	 	 	152	 	 	 	152	 	 	 	Nil	 
	Total	 	 	10,310	 	 	 	7,479	 	 	 	4,366	 	 	 	3,113	 

 

Notes:

 

		(1)	All dollar amounts are in thousands.

		(2)	Use of proceeds converted to United States dollars based on the May 30, 2020 Bank of Canada exchange
rate of US$1.00 = C$1.3785.

 

    15

     

    

 

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

October Offering

 

The table below describes the differences between
the Company’s anticipated use of the net proceeds from the October Offering as disclosed in the final prospectus of the Company
dated October 26, 2020, and the Company’s actual use of the net proceeds for the October Offering as of December 31,
2020:

 

 

		 	Planned
    Use of	 	 	Planned
    Use	 	 	Actual
    Use of	 	 	Difference
    in	 
	 	 	Proceeds(1)	 	 	of	 	 	Proceeds(1)	 	 	Amounts(1)	 
	Component	 	(C$)	 	 	Proceeds(1)(2) 	 	 	(US$)	 	 	(US$)	 
	 	 	 	 	 	(US$)	 	 	 	 	 	 	 
	Develop
    mandate, including:	 	 	16,550	 	 	 	12,426	 	 	 	1,461	 	 	 	10,965	 
	Addiction
    Program (18-MC)	 	 	3,800	 	 	 	2,853	 	 	 	Nil	 	 	 	2,853	 
	Microdose
    LSD Program	 	 	1,500	 	 	 	1,126	 	 	 	Nil	 	 	 	1,126	 
	Project
    Lucy (Experiential LSD)	 	 	3,500	 	 	 	2,628	 	 	 	Nil	 	 	 	2,628	 
	Chemistry,
    manufacturing and control (LSD & 18-MC)	 	 	7,750	 	 	 	5,819	 	 	 	1,461	 	 	 	4,358	 
	Discover
    mandate, including:	 	 	2,650	 	 	 	1,990	 	 	 	Nil	 	 	 	1,990	 
	License
    Fees	 	 	1,000	 	 	 	751	 	 	 	Nil 	 	 	 	751	 
	R&D	 	 	1,650	 	 	 	1,239	 	 	 	Nil	 	 	 	1,239	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
    general corporate and working capital purposes, including:	 	 	3,800	 	 	 	2,853	 	 	 	1,133	 	 	 	1,720	 
	Management
    and contract personnel costs	 	 	2,700	 	 	 	2,027	 	 	 	416	 	 	 	1,611	 
	Professional
    fees	 	 	300	 	 	 	225	 	 	 	225	 	 	 	Nil	 
	Corporate
    development, marketing and public and investor relations	 	 	800	 	 	 	601	 	 	 	492	 	 	 	109	 
	Total	 	 	23,000	 	 	 	18,012	 	 	 	1,133	 	 	 	16,137	 

Notes:

 

		(1)	All dollar amounts are in thousands.

 

		(2)	Use of proceeds in respect of the October Offering converted to United States dollars based on the
October 30, 2020 Bank of Canada exchange rate of US$1.00 = C$1.3318. Use of proceeds in respect of the December Offering converted
to United States dollars based on the December 11, 2020 Bank of Canada exchange rate of US$1.00 = C$1.2769.

 

    16

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

December Offering

 

The table below describes the differences between
the Company’s anticipated use of the net proceeds from the December Offering as disclosed in the final prospectus of the Company
dated December 7, 2020, and the Company’s actual use of the net proceeds for the December Offering as of December 31,
2020:

 

		 	Planned Use of	 	 	Planned Use	 	 	Actual Use	 	 	Difference	 
	 	 	Proceeds(1)	 	 	of	 	 	of	 	 	in	 
	Component	 	(C$)	 	 	Proceeds(1)(2) 	 	 	Proceeds(1)	 	 	Amounts(1)	 
	 	 	 	 	 	(US$)	 	 	(US$)	 	 	(US$)	 
	Albert digital medicine division:	 	 	10,000	 	 	 	7,831	 	 	 	Nil	 	 	 	7,831	 
	Develop mandates, including:	 	 	5,500	 	 	 	4,307	 	 	 	Nil	 	 	 	4,307	 
	Microdose LSD Program	 	 	2,500	 	 	 	1,958	 	 	 	Nil	 	 	 	1,958	 
	Chemistry, manufacturing and control (LSD, 18-MC and others)	 	 	3,000	 	 	 	2,349	 	 	 	Nil	 	 	 	2,349	 
	Other general corporate and working capital purposes, including:	 	 	12,219	 	 	 	9,568	 	 	 	224	 	 	 	9,344	 
		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Addiction Program (18-MC)	 	 	3,500	 	 	 	2,741	 	 	 	Nil	 	 	 	2,741	 
	Project Lucy (experiential LSD)	 	 	3,000	 	 	 	2,349	 	 	 	Nil	 	 	 	2,349	 
	R&D collaborations and UHB Liechti Lab	 	 	2,000	 	 	 	1,566	 	 	 	Nil	 	 	 	1,566	 
	Management and contract personnel costs	 	 	2,718	 	 	 	2,129	 	 	 	Nil	 	 	 	2,129	 
	Professional fees	 	 	300	 	 	 	235	 	 	 	224	 	 	 	11	 
	Corporate development, marketing and public and investor relations	 	 	700	 	 	 	548	 	 	 	Nil	 	 	 	548	 
	Total	 	 	27,719	 	 	 	21,707	 	 	 	224	 	 	 	21,482	 

 

Notes:

 

		(1)	All dollar amounts are in thousands.

 

		(2)	Use of proceeds in respect of the October Offering converted to United States dollars based on the
October 30, 2020 Bank of Canada exchange rate of US$1.00 = C$1.3318. Use of proceeds in respect of the December Offering converted
to United States dollars based on the December 11, 2020 Bank of Canada exchange rate of US$1.00 = C$1.2769.

 

LIQUIDITY AND CAPITAL RESOURCES

 

Cash and working capital

 

Since inception, we have financed our operations
primarily from the issuance of equity and from interest income on funds available for investment. Our primary capital needs are for funds
to support our scientific research and development activities including staffing, manufacturing, preclinical studies, clinical trials,
administrative costs and for working capital.

 

We have experienced operating losses and cash
outflows from operations since incorporation, will require ongoing financing in order to continue our research and development activities
and we have not earned any revenue or reached successful commercialization of our products. Our future operations are dependent upon our
ability to finance our cash requirements which will allow us to continue our research and development activities and the commercialization
of our products. There can be no assurance that we will be successful in continuing to finance our operations.

 

On February 18, 2020, MindMed US completed
the second tranche of the MindMed US Offering, issuing a total of 37,105,370 MindMed Class D Shares at a price of CAD$0.33 ($0.25)
per share for gross proceeds of $9,227,000. On closing of the second tranche, MindMed issued Canaccord Genuity Corp. (“Canaccord”),
as agent, 2,596,376 compensation warrants.

 

    17

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

On February 26, 2020, MindMed US completed
the third tranche of the MindMed US Offering, issuing a total of 41,227,788 MindMed Class D Shares at a price of CAD$0.33 ($0.25)
per share for gross proceeds of $10,252,000. On closing of the third tranche, MindMed US issued Canaccord 2,045,945 compensation warrants
and Eight Capital, as advisory agent, 840,000 compensation warrants.

 

As of February 26, 2020, Broadway had 49,860,200
Broadway common shares (“Broadway Common Shares”) issued and outstanding; pursuant to the Arrangement Agreement, Broadway
Common Shares were consolidated on an eight to one (8:1) basis and converted to Subordinate Voting Shares.

 

On
May 26, 2020, the Company completed a bought deal financing resulting in the issuance of 24,953,850 units at a price per unit of
CAD$0.53 for gross proceeds of $9,582,000. Each unit comprised one Subordinate Voting Share and one-half of one Subordinate Voting Share
purchase warrant (each whole warrant, a “May Warrant”). Each May Warrant is exercisable at CAD$0.79 until
May 26, 2022.

 

On October 30, 2020, the Company completed
a bought deal financing resulting in the issuance of 27,381,500 units of the Company at a price per unit of CAD$1.05 for gross proceeds
of CAD$28,751,000. Each unit comprised one Subordinate Voting Share of the Company and one-half of one Subordinate Voting Share purchase
warrant (each whole warrant, an "October Warrant"). Each October Warrant entitles the holder thereof to purchase one
Subordinate Voting Share at an exercise price of CAD$1.40 until October 30, 2023.

 

On December 11, 2020, the Company completed
a bought deal financing resulting in the issuance of 18,170,000 units of the Company at a price per unit of CAD$1.90 for gross proceeds
of CAD$34,523,000. Each unit comprised one Subordinate Voting Share of the Company and one-half of one Subordinate Voting Share purchase
warrant (each whole warrant, a "December Warrant"). Each December Warrant entitles the holder thereof to purchase
one Subordinate Voting Share at an exercise price of CAD$2.45 until December 11, 2023.

 

Our cash and working capital as at December 31,
2020 were $80,094,000 and $78,592,000 respectively. The increase in cash was due mainly to the $97,381,000 of net financings mentioned
above net of the cash used in operations of $23,916,000.

 

Cash flows from operating activities

 

Cash used in operating activities of $24,179,000
for the year ended December 31, 2020 was mainly due to the comprehensive loss of $35,359,000, offset by non-cash share-based payments
of $8,810,000 and the non-cash portion of the reverse takeover transaction cost of $1,539,000.

 

Cash flows from financing activities

 

Cash provided by financing activities totaled
$97,381,000 for the year ended December 31, 2020.

 

Contractual Obligations and Contingencies

 

We enter into research, development and license
agreements in the ordinary course of business where we receive research services and rights to proprietary technologies. Milestone and
royalty payments that may become due under various agreements are dependent on, among other factors, clinical trials, regulatory approvals
and ultimately the successful development of a new drug, the outcome and timing of which is uncertain.

 

We periodically enter into research and license
agreements with third parties that include indemnification provisions customary in the industry. These indemnities generally require us
to compensate the other party for certain damages and costs incurred as a result of claims arising from research and development activities
undertaken by us or on our behalf. In some cases, the maximum potential amount of future payments that could be required under these indemnification
provisions could be unlimited. These indemnification provisions generally survive termination of the underlying agreement. The nature
of the indemnification obligations prevents us from making a reasonable estimate of the maximum potential amount we could be required
to pay. Historically, we have not made any indemnification payments under such agreements and no amount has been accrued in our financial
statements with respect to these indemnification obligations.

 

    18

     

    

 

Other than as disclosed below, we did not have
any contractual obligations relating to long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations
or other long-term liabilities reflected on our statement of financial position as at December 31, 2020:

 

	 	 	Payment due by period(4)	 
	Contractual Obligations(1)	 	Total	 	 	Less than 1 year	 	 	1 to 3 years	 	 	3 to 5 years	 	 	More than 5 years	 
	Purchase obligations(2)	 	$	8,586	 	 	$	8,586	 	 	$	-	 	 	$	-	 	 	$	-	 

 

Notes:

 

		(1)	Contractual obligations in the above table do not include amounts in accounts payable and accrued liabilities
on our statement of financial position as at December 31, 2020.

 

		(2)	Purchase obligations include all non-cancellable contracts, and all cancellable contracts with $5,000
or greater remaining committed at the period end including agreements related to the conduct of our clinical trials, preclinical studies
and manufacturing activities.

 

		(3)	All dollar amounts are in thousands.

 

DESCRIPTION OF SHARE CAPITAL

 

The continuity of the number of our issued and
outstanding shares from May 30, 2019 to the date of the reverse takeover transaction is presented below. Prior to the completion
of the reverse takeover transaction, the share capital of MindMed US was reported. Subsequent to that date, share capital of MindMed is
reported:

 

Mind Medicine, Inc. Share Capital

 

	 	 	Class A
 Voting	 	 	Class B
 Voting	 	 	Class C
 Non-Voting	 	 	Class D
 Non-Voting	 	 	Total	 
	Acquisition of 18-MC program	 	 	55,000,000	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	55,000,000	 
	Class B shares	 	 	-	 	 	 	35,000,000	 	 	 	-	 	 	 	-	 	 	 	35,000,000	 
	Private placement	 	 	-	 	 	 	-	 	 	 	46,993,671	 	 	 	-	 	 	 	46,993,671	 
	Private placement	 	 	-	 	 	 	-	 	 	 	-	 	 	 	10,000,000	 	 	 	10,000,000	 
	Director compensation	 	 	-	 	 	 	-	 	 	 	-	 	 	 	725,025	 	 	 	725,025	 
	Offering - First Tranche	 	 	-	 	 	 	-	 	 	 	-	 	 	 	18,771,897	 	 	 	18,771,897	 
	Balance, December 31, 2019	 	 	55,000,000	 	 	 	35,000,000	 	 	 	46,993,671	 	 	 	29,496,922	 	 	 	166,490,593	 
	Offering - Second Tranche	 	 	-	 	 	 	-	 	 	 	-	 	 	 	37,105,370	 	 	 	37,105,370	 
	Employee termination expense	 	 	-	 	 	 	-	 	 	 	-	 	 	 	100,000	 	 	 	100,000	 
	Offering - Third Tranche	 	 	-	 	 	 	-	 	 	 	-	 	 	 	41,227,788	 	 	 	41,227,788	 
	Shares exchanged under Arrangement	 	 	(55,000,000	)	 	 	(35,000,000	)	 	 	(46,993,671	)	 	 	(107,930,080	)	 	 	(244,923,751	)
	Balance after Arrangement	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 

 

    19

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

Mind Medicine (MindMed) Inc. Share
Capital

 

	 	 	Subordinate
 Voting	 	 	Multiple
 Voting	 	 	Total

 Voting Rights	 
	Broadway share consolidation	 	 	6,232,525	 	 	 	-	 	 	 	6,232,525	 
	Shares exchanged under Arrangement	 	 	189,923,751	 	 	 	-	 	 	 	189,923,751	 
	Shares exchanged under Arrangement	 	 	-	 	 	 	550,000	 	 	 	55,000,000	 
	Bought deal financing	 	 	70,505,350	 	 	 	-	 	 	 	70,505,350	 
	Options exercised	 	 	2,563,073	 	 	 	-	 	 	 	2,563,073	 
	Warrants exercised	 	 	31,420,721	 	 	 	-	 	 	 	31,420,721	 
	Share-based payments	 	 	3,000,000	 	 	 	-	 	 	 	3,000,000	 
	Director compensation	 	 	2,489,740	 	 	 	-	 	 	 	2,489,740	 
	Balance, December 31, 2020	 	 	306,135,160	 	 	 	550,000	 	 	 	361,135,160	 

 

Share
capital issued – for the period ended December 31, 2019

 

In July 2019, 55,000,000 Class A Shares were issued for the
acquisition of the 18-MC program.

 

In July 2019, 35,000,000 Class B Shares
were issued to the founders of MindMed US for gross proceeds of $4,000.

 

In September 2019,
Mind Med US completed a non-brokered private placement financing and sold 45,972,630 Class C Shares at a price of $0.10 per share
yielding gross proceeds of $4,597,000. MindMed US also settled an outstanding loan of $100,000 and interest owing of $2,000 through
the issuance of 1,021,041 Class C Shares to a member of the Board of Directors of MindMed US. Total Class C Shares issued were
46,993,671 for proceeds of $4,699,367.

 

Also, in September 2019, MindMed US sold
10,000,000 Class D Shares to two directors of MindMed US at a price of $0.10 per share, yielding gross proceeds of $1,000,000 to
MindMed US.

 

In December 2019, MindMed US entered into
an agency agreement with Canaccord and completed the first tranche of the MindMed US Offering, issuing a total of 18,771,897 Class D
Shares at a price of CAD$0.33 ($0.25) per share for gross proceeds of $4,727,000, before deducting cash share issuance costs of $443,000.
On closing of the first tranche, MindMed US issued an aggregate of 1,314,033 compensation warrants to Canaccord.

 

Share
capital issued – for the year ended December 31, 2020

 

On February 18, 2020, MindMed US completed
the second tranche of the MindMed US Offering, issuing a total of 37,105,370 Class D Shares at a price of CAD$0.33 ($0.25) per share
for gross proceeds of $9,227,000. On closing of the second tranche, MindMed US issued Canaccord, as agent, 2,596,376 compensation warrants.

 

On February 18, 2020, MindMed US issued 100,000
Class D Shares to a former executive of the Company.

 

On February 26, 2020, MindMed US completed
the third tranche of the MindMed US Offering, issuing a total of 41,227,788 Class D Shares at a price of CAD$0.33 ($0.25) per share
for gross proceeds of $10,252,000. On closing of the third tranche of the MindMed US Offering, MindMed US issued Canaccord, as agent,
2,045,945 compensation warrants and Eight Capital, as advisory agent, 840,000 compensation warrants.

 

Pursuant to the Arrangement Agreement, 244,923,751
Class A Shares were exchanged for Subordinate Voting Shares or Multiple Voting Shares. Pursuant to the Arrangement Agreement, 1,000
common shares of MindMed US were issued to Broadway in consideration of the issuance of the Subordinate Voting Shares and Multiple Voting
Shares.

 

As of February 26, 2020, Broadway had 49,860,200
Broadway Common Shares issued and outstanding; pursuant to the Arrangement Agreement, Broadway Common Shares were consolidated on an eight-for-one
(8:1) ratio and converted to Subordinate Voting Shares.

 

Pursuant to the Arrangement Agreement, all Class A
Shares were converted to either: (a) Subordinate Voting Shares; or (b) Multiple Voting Shares (55,000,000 Class A Shares
converted to 550,000 Multiple Voting Shares).

 

On May 26, 2020, the Company completed the
May Offering resulting in the issuance of 24,953,850 units at a price per unit of CAD$0.53 ($0.38) for gross proceeds of $9,582,000.
Each unit comprised one Subordinate Voting Share and one-half of one May Warrant. Each May Warrant is exercisable at CAD$0.79
($0.57) until May 26, 2022.

 

    20

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

On October 30, 2020, the Company completed
the October Offering resulting in the issuance of 27,381,500 units of the Company at a price per unit of CAD$1.05 ($0.79) for gross
proceeds of CAD$28,751,000 ($22,075,000). Each unit comprised one Subordinate Voting Share of the Company and one-half of one October Warrant.
Each October Warrant entitles the holder thereof to purchase one Subordinate Voting Share at an exercise price of CAD$1.40 ($1.05)
until October 30, 2023. Also in connection with this transaction, the Company issued 1,090,200 compensation warrants to its agent.
Total cash share issuance costs of $1,589,000 were deducted from the gross proceeds.

 

On December 11, 2020, the Company completed
the December Offering resulting in the issuance of 18,170,000 units of the Company at a price per unit of CAD$1.90 ($1.49) for gross
proceeds of CAD$34,523,000 ($26,506,000). Each Unit comprised one Subordinate Voting Share of the Company and one-half of one December Warrant.
Each December Warrant entitles the holder thereof to purchase one Subordinate Voting Share at an exercise price of CAD$2.45 ($1.92)
until December 11, 2023. Also in connection with this transaction, the Company issued 1,624,290 compensation warrants to its agent.
Total cash share issuance costs of $2,197,000 were deducted from the gross proceeds.

 

During 2020, warrants were exercised resulting
in the issuance of 31,420,721 Subordinate Voting Shares for proceeds of $24,477,000.

 

During 2020 options were exercised resulting in
the issuance of 2,563,073 Subordinate Voting Shares resulting in proceeds of $648,000.

 

Fully Diluted Share Capital

 

The number of issued and outstanding Subordinate
Voting Shares on a fully converted basis as at December 31, 2020 was as follows:

 

	 	 	Number of
    Subordinate
 Voting Share Equivalents	 
	Subordinate Voting	 	 	306,135,160	 
	Multiple Voting	 	 	55,000,000	 
	Unvested portion of director loan shares	 	 	1,785,235	 
	Stock Options	 	 	22,592,427	 
	Compensation Warrants	 	 	1,090,200	 
	Financing Warrants	 	 	14,087,675	 
	Total – December 31, 2020	 	 	400,690,697	 

 

TREND INFORMATION

 

Historical patterns of expenditures cannot be
taken as an indication of future expenditures. The amount and timing of expenditures and therefore liquidity and capital resources vary
substantially from period to period depending on the number of research and development programs being undertaken at any one time, the
stage of the development programs, the timing of significant expenditures for manufacturing, toxicology and pharmacology studies and clinical
trials and the availability of funding from investors and prospective commercial partners.

 

    21

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

Selected Quarterly Financial Information

 

	 	 	Q4 - 2020	 	 	Q3 – 2020	 	 	Q2 – 2020	 	 	Q1 – 2020	 	 	Q4 - 2019	 	 	Q3 - 2019	 	 	Q2 – 2019	 
	Revenue	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Research and development	 	 	4,912	 	 	 	5,342	 	 	 	3,021	 	 	 	2,112	 	 	 	1,598	 	 	 	425	 	 	 	26	 
	General and administrative	 	 	2,987	 	 	 	1,579	 	 	 	1,553	 	 	 	1,571	 	 	 	1,995	 	 	 	1,045	 	 	 	65	 
	Listing expense	 	 	-	 	 	 	-	 	 	 	30	 	 	 	2,142	 	 	 	-	 	 	 	-	 	 	 	-	 
	Net loss for the period	 	 	(13,925	)	 	 	(8,635	)	 	 	(5,757	)	 	 	(7,021	)	 	 	(3,766	)	 	 	(1,617	)	 	 	(91	)
	Basic and diluted net loss per share	 	 	0.04	 	 	 	0.03	 	 	 	0.02	 	 	 	0.04	 	 	 	0.02	 	 	 	0.03	 	 	 	0	 
	Cash and funds held in trust	 	 	80,094	 	 	 	18,235	 	 	 	24,068	 	 	 	20,508	 	 	 	6,702	 	 	 	4,822	 	 	 	59	 
	Total assets	 	 	85,644	 	 	 	23,683	 	 	 	29,848	 	 	 	26,226	 	 	 	11,9612	 	 	 	10,222	 	 	 	59	 

 

Note: Dollar amounts are in thousands.

 

The consolidated financial statements have been
prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”), and the interpretations of the IFRS Interpretations Committee “IFRIC”, effective for
the Company’s reporting for the year ended December 31, 2020.

 

Research and development expenses increased throughout
2019 and into 2020 due to costs associated with clinical trials, costs of preparing drug substance for clinical trials and the amortization
of intangibles related to the acquisition of the 18-MC program. The net loss increased in the first quarter of 2020 primarily due to transaction
costs related to the completion of the Arrangement. The net loss increased throughout 2020 due to the growth of the Company’s staffing
and the advancement of clinical studies and manufacturing of required compounds. Discussion of the programs and the Company’s advancement
is discussed further in the “Business” section of this document. Cash has increased due to the successful completion of financings
during the periods.

 

Functional and Presentation Currency

 

These consolidated financial statements are presented
in United States dollars, which is the Company’s presentation currency. The functional currency of the Company and its subsidiaries
are as follows:

 

	Mind Medicine (MindMed) Inc.	Canadian dollar
	Mind Medicine, Inc. (US operating company)	US dollar
	MindMed Pty Ltd. (Australian subsidiary)	US dollar
	Mind Med Discover GmbH (Swiss subsidiary)	Swiss franc

 

The Company and its subsidiaries assess their
functional currency individually. The functional currency of each of the Company’s subsidiaries is the currency of the primary economic
environment in which each entity operates. Determination of functional currency involves certain judgments to determine the primary economic
environment and this is re-evaluated for each new entity or if conditions change.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

We do not have any off-balance sheet arrangements
that have, or are reasonably likely to have, a current or future effect on our financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that are material to investors.

 

TRANSACTIONS BETWEEN RELATED PARTIES

 

For the year ended December 31, 2020, the
key management personnel of the Company were the board of directors, Executive Chair & Co-Chief Executive Officer, Co-Chief Executive
Officer & Head of Investor Relations, President, Chief Medical Officer, Chief Scientific Officer, Chief Operating Officer and
Chief Financial Officer.

 

    22

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

Compensation for key management personnel of the
Company for the year ended December 31, 2020 consisted of consulting fees, short-term benefits and other compensation of $2,389,000.

 

The
Company incurred legal fees of $1,469,000 to companies controlled by a director of the Company during the year ended December 31,
2020.

 

As
at December 31, 2020 the Company had accounts payable and accrued liabilities outstanding of $93,000 to a company controlled
by a director for legal services.

 

CRITICAL ACCOUNTING ESTIMATES

 

The preparation of financial statements in conformity
with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets and liabilities, revenue and expenses, related disclosures of contingent assets and liabilities and the determination
of our ability to continue as a going concern. Actual results could differ materially from these estimates and assumptions. We review
our estimates and underlying assumptions on an ongoing basis. Revisions are recognized in the period in which the estimates are revised
and may impact future periods.

 

The areas involving a higher degree of judgment
or complexity, or areas where assumptions and estimates are significant to the financial statements have been set and are more fully described
in note 3 of our audited financial statements for the period ended December 31, 2020.

 

ACCOUNTING POLICIES

 

Our significant accounting policies are set out
in note 2 to our audited financial statements for the period ended December 31, 2020. This MD&A should be read in conjunction
with the audited consolidated financial statements for the period ended December 31, 2020.

 

Other accounting standards or amendments to existing
accounting standards that have been issued, but have future effective dates, are either not applicable or are not expected to have a significant
impact on our financial statements.

 

FINANCIAL INSTRUMENTS

 

Fair value

 

Fair Value Measurement provides a hierarchy of
valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs are those
that reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions with respect
to how market participants would price an asset or liability. These two inputs used to measure fair value fall into the following three
different levels of the fair value hierarchy:

 

Level 1 Quoted prices in active markets for identical
instruments that are observable.

 

Level 2 Quoted prices in active markets for similar
instruments; inputs other than quoted prices that are observable and derived from or corroborated by observable market data.

 

Level 3 Valuations derived from valuation techniques
in which one or more significant inputs are unobservable.

 

The hierarchy requires the use of observable market
data when available.

 

Cash and accounts payable and accrued liabilities
are all short-term in nature and, as such, their carrying values approximate fair values. The derivative liability – foreign currency
warrants are valued as Level 1 in the hierarchy, using trading values established in an active market.

 

Risks

 

The Company has exposure to credit risk, liquidity
risk, interest rate risk and currency risk. The Company’s Board of Directors has overall responsibility for the establishment and
oversight of the Company’s risk management framework. The Audit Committee of the board of directors is responsible for reviewing
the Company’s risk management policies.

 

    23

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

(a)           Credit
risk

 

Credit risk is the risk of financial loss to the
Company if a counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s
cash. The carrying amount of these financial assets represents the maximum credit exposure. Cash and funds held in trust are on deposit
with major Swiss, American and Canadian chartered banks and the Company may invest in high-grade short-term instruments.

 

(b)           Liquidity
risk

 

Liquidity risk is the risk that the Company will
not be able to meet its financial obligations as they fall due. The Company is a development stage company and is reliant on external
fundraising to support its operations. Once funds have been raised, the Company manages its liquidity risk by investing in cash and short-term
instruments to provide regular cash flow for current operations. It also manages liquidity risk by continuously monitoring actual and
projected cash flows. The board of directors reviews and approves the Company’s operating and capital budgets, as well as any material
transactions not in the ordinary course of business.

 

(c)           Interest
rate risk

 

Interest
rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company holds its cash in bank accounts or high-interest money market accounts that have a variable rate of interest.
The Company manages its interest rate risk by holding highly liquid short-term instruments and by holding its investments to maturity,
where possible. The Company had no material interest income during the quarter.

 

(d)           Currency
risk

 

The Company is exposed to currency risk related
to the fluctuation of foreign exchange rates and the degree of volatility of those rates. Currency risk is limited to the portion of the
Company’s business transactions and balances denominated in currencies other than the United States dollar.

 

	Exposure to Foreign Currency (in USD)	 	Cash	 	 	Payables	 	 	Expenses

Year ended

 Dec 31, 2020
	 
	Canadian Dollars	 	$	1,568	 	 	$	(207	)	 	$	1,794	 
	Australian Dollars	 	 	117	 	 	 	(62	)	 	 	2,165	 
	Swiss Francs	 	 	228	 	 	 	(63	)	 	 	2,820	 
	Swedish Krona	 	 	-	 	 	 	(14	)	 	 	14	 
	Euro	 	 	-	 	 	 	(130	)	 	 	239	 
	British Pounds	 	 	-	 	 	 	-	 	 	 	27	 
	Total, Dec 31, 2020	 	$	1,913	 	 	$	(476	)	 	$	7,059	 

 

Therefore, a 1% change in the USD exchange rate
would have a net impact on foreign currency balances as at December 31, 2020 of $14. Also, a 1% change in the USD exchange rate on
expenditures would have a net impact during the period of $71 assuming that all other variables remained constant.

 

SUBSEQUENT EVENTS

 

On January 7, 2021, the Company announced
that it had closed a bought deal short form prospectus offering. In connection with the offering, the Company issued 20,930,000 units
at a price per unit of CAD$4.40 for gross proceeds of CAD$92,092,000. Each unit comprised one Subordinate Voting Share of the Company
and one-half of one Subordinate Voting Share purchase warrant (each whole warrant, a “January Warrant”). Each January Warrant
entitles the holder thereof to purchase one Subordinate Voting Share at an exercise price of CAD$5.75 until January 7, 2024.

 

On February 26,
2021, the Company announced that it had closed the acquisition of HealthMode, Inc., a digital medicine and therapeutics company.
In consideration for the acquisition of HealthMode, MindMed has issued 81,833 Multiple Voting Shares of MindMed (equivalent to 8,183,300
Subordinate Voting Shares) and paid approximately CAD$286,000 in cash. All Multiple Voting Shares issued pursuant to the acquisition were
issued at a price of CAD$385.87, which is equivalent to CAD$3.8587 per underlying Subordinate Voting Share. The CAD$3.8587 market price
was calculated using the five-day volume weighted average trading price of the Subordinate Voting Shares of MindMed, as reported by the
NEO Exchange as at the close of business on January 19, 2021, which was the date on which the parties entered into a non-binding
letter of intent.

 

    24

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

As part of the Acquisition,
MindMed has agreed to assume 7,891 outstanding HealthMode options at an exchange ratio of one HealthMode option for 4.260451 options of
MindMed issuable under MindMed’s stock option plan. Each MindMed option issued will be fully vested and be exercisable into one
Subordinate Voting Share at an exercise price of $0.02 per share (taking into account the exchange ratio).

 

On March 9, 2021, the Company announced that
it had closed a private placement offering. In connection with the offering, the Company issued 6,000,000 units (the “March Units”)
at a price per unit of CAD$3.25 for gross proceeds of CAD$19,500,000. Each unit comprised one Subordinate Voting Share of the Company
and one-half of one Subordinate Voting Share purchase warrant (each whole warrant, a “March Warrant”). Each March Warrant
entitles the holder thereof to purchase one Subordinate Voting Share at an exercise price of CAD$4.40 until March 9, 2024. The Subordinate
Voting Shares and March Units issued pursuant to this private placement offering are subject to statutory hold periods expiring on
July 10, 2021.

 

RISK FACTORS

 

The following information sets forth material
risks and uncertainties that may affect our business, including our future financing and operating results and could cause our actual
results to differ materially from those contained in forward-looking statements we have made in this MD&A. The risks and uncertainties
below are not the only ones we face. Additional risks and uncertainties not presently known to us or that we believe to be immaterial
may also adversely affect our business. Further, if we fail to meet the future expectations of the public market in any given period now
that the Company’s shares are listed, the market price of our Subordinate Voting Shares could decline. The Company operates in a
highly competitive environment that involves significant risks and uncertainties, some of which are outside of our control.

 

Risks Related to the Company’s Financial Position and Need
for Additional Capital

 

The Company expects to incur future losses and may never become
profitable

 

The Company has historically incurred losses
and incurred an operating loss for the year ending December 31, 2020. The Company believes that operating losses will continue
as the Company is planning to incur significant costs associated with its research and development initiatives. The Company’s
net losses have had and will continue to have an adverse effect on, among other things, shareholders’ equity, total assets and
working capital. The Company expects that losses will fluctuate from quarter to quarter and year to year, and that such fluctuations
may be substantial. The Company cannot predict when it will become profitable, if at all.

 

Negative operating cash flow

 

The Company has negative cash flow from operating
activities and has historically incurred net losses. There is no assurance that sufficient revenues will be generated in the near future.
To the extent that the Company has negative operating cash flows in future periods, it may need to deploy a portion of its existing working
capital to fund such negative cash flows. The Company will be required to raise additional funds through the issuance of additional equity
securities or through loan financing. There is no assurance that additional capital or other types of financing will be available if needed
or that these financings will be on terms at least as favourable to the Company as those previously obtained, or at all.

 

The Company will require additional capital
to finance its operations, which may not be available to the Company on acceptable terms, or at all

 

As a research and development company, MindMed
expects to spend a substantial amount of money to continue the research, development and testing of its product candidates and to prepare
to commercialize products subject to approvals from the FDA in the United States and similar regulatory authorities in the other jurisdictions
in which the Company operates, including Australia, Switzerland and the Netherlands. The Company will also require significant additional
funds if it expands the scope of its current clinical plans or if it were to acquire any new assets and advance their development. As
a result, for the foreseeable future, the Company will have to fund all of its operations and development expenditures from cash on hand,
equity financings, through collaborations with other biotechnology or pharmaceutical companies or through financings from other sources.
If it does not succeed in raising additional funds on acceptable terms, the Company might not be able to complete planned preclinical
studies and clinical trials or pursue and obtain approval of any product candidates from the FDA and other regulatory authorities. It
is possible that future financing will not be available or, if available, may not be on favorable terms. The availability of financing
will be affected by the achievement of the Company’s corporate goals, the results of scientific and clinical research, the ability
to obtain regulatory approvals, the state of the capital markets generally and with particular reference to drug development companies,
the status of strategic alliance agreements and other relevant commercial considerations. If adequate funding is not available, the Company
may be required to delay, reduce or eliminate one or more of its product development programs, or obtain funds through corporate partners
or others who may require the Company to relinquish significant rights to product candidates or obtain funds on less favourable terms
than the Company would otherwise accept. To the extent that external sources of capital become limited or unavailable or available on
onerous terms, the Company’s intangible assets and its ability to continue its clinical development plans may become impaired, and
the Company’s assets, liabilities, business, financial condition and results of operations may be materially or adversely affected.

 

    25

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

The Company currently has no product revenue
and will not be able to maintain its operations and research and development without additional funding

 

To date, the Company has generated no product
revenue and cannot predict when and if it will generate product revenue. The Company’s ability to generate product revenue and ultimately
become profitable depends upon its ability, alone or with partners, to successfully develop its product candidates, obtain regulatory
approval, and commercialize products, including any of its current product candidates, or other product candidates that it may develop,
in-license or acquire in the future. The Company does not anticipate generating revenue from the sale of products for the foreseeable
future. The Company expects its research and development expenses to increase in connection with its ongoing activities, particularly
as it advances its product candidates through clinical trials.

 

The Company is exposed to the financial risk
related to the fluctuation of foreign exchange rates and the degrees of volatility of those rates

 

The Company may be adversely affected by foreign
currency fluctuations. To date, the Company has been primarily funded through equity issuances and from interest income on funds available
for investment, which are primarily denominated in Canadian dollars. A significant portion of the Company’s expenditures are also
in currencies other than Canadian dollars, and the Company is therefore subject to foreign currency fluctuations which may, from time
to time, impact its financial position and results of operations.

 

Risks Related to the Company’s Business
and Industry

 

Violations of laws and regulations could
result in repercussions, and psychedelic inspired drugs may never be approved as medicines and psychedelic assisted therapy may face
similar challenges 

 

In the United States, certain psychedelic drugs,
including lysergic acid diethylamide (LSD), ibogaine, methylenedioxy-methylamphetamine (MDMA), dimethyltryptamine (DMT) and psilocybin,
are classified as Schedule I drugs under the CSA (21 U.S.C. § 801 et seq.) and the Controlled Substances
Import and Export Act (21 U.S.C. § 951 et seq.) and as such, medical and recreational use is illegal under U.S. federal law.
Certain other jurisdictions in which the Company currently operates, including Australia, Switzerland and the Netherlands, have similarly
regulated certain psychedelic drugs. There is no guarantee that psychedelic drugs or psychedelic inspired drugs will ever be approved
as medicines in any jurisdiction in which the Company operates. Similarly, no psychedelic assisted therapies have been approved to
date and there is no guarantee that any psychedelic assisted therapies that the Company is exploring will ever be approved in any jurisdiction
in which the Company operates. MindMed’s programs involving Schedule I drugs are conducted in strict
compliance with the laws and regulations regarding the production, storage and use of Schedule I drugs. As such, all facilities engaged
with such substances by or on behalf of MindMed do so under current licenses and permits issued by appropriate federal, state and local
governmental agencies. While MindMed is focused on programs using psychedelic inspired compounds, MindMed does not have any direct or
indirect involvement with the illegal selling, production or distribution of any substances in the jurisdictions in which it operates
and does not intend to have any such involvement. However, the laws and regulations generally applicable to the industries in which the
Company is involved in may change in ways currently unforeseen. Any amendment to or replacement of existing laws or regulations, including
the classification or re-classification of the substances the Company is developing or working with, which are matters beyond the Company's
control, may cause the Company’s business, financial condition, results of operations and prospects to be adversely affected or
may cause the Company to incur significant costs in complying with such changes or it may not be able to comply with such changes at all.
A violation of any U.S. federal laws and regulations, such as the CSA and Controlled Substances Import and Export Act, or of similar legislation
in the jurisdictions in which it operates, including Australia, Switzerland and the Netherlands, could result in significant fines, penalties,
administrative sanctions, convictions or settlements arising from civil proceedings initiated by either government entities in the jurisdictions
in which the Company operates, or by private citizens, or through criminal charges. The loss of the necessary licenses and permits for
Schedule I drugs could have an adverse effect on MindMed’s operations.

 

    26

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

Research and development of drugs targeting
the central nervous system is particularly difficult, which makes it difficult to predict and understand why such drugs have a positive
effect on some patients but not others

 

Discovery and development of new drugs targeting
central nervous system disorders are particularly difficult and time-consuming, as evidenced by the higher failure rate for new drugs
for central nervous system disorders compared with most other areas of drug discovery. Any setbacks in the Company’s clinical development
could have a material adverse effect on its business and operating results. In addition, any later stage clinical trials may present challenges
related to conducting adequate and well-controlled clinical trials, including designing an appropriate comparator arm in trials given
the potential difficulties related to maintaining the blinding during the trial or placebo or nocebo effects.

 

Due to the complexity of the human brain and the
central nervous system, it can be difficult to predict and understand why a drug may have a positive effect on some patients but not others
and why some individuals may react to the drug differently from others. Moreover, if patients being treated in clinical trials have previously
been treated with other drugs or therapies, the prior use of such drugs or therapies concurrently or up to two weeks prior to administration
may interfere with the mechanism of action of or response to, the Company’s therapies. Further, the size and heterogenous nature
of certain populations that the Company studies may further result in different reactions and impact the effectiveness of
the Company’s investigational therapies. All of these factors may make it difficult to assess the prior use or the overall efficacy
of the Company’s therapies.

 

Failure to comply with health and data protection
laws and regulations could lead to federal, state or provincial government enforcement actions, including civil or criminal penalties,
private litigation, and adverse publicity and could negatively affect MindMed’s operating results and business

 

The Company and any potential collaborators may
be subject to federal, state and provincial data protection laws and regulations in the jurisdictions in which it operates, such as laws
and regulations that address privacy and data security. In addition, the Company may obtain health information from third parties, including
research institutions from which the Company obtains clinical trial data, which are subject to privacy and security requirements under
applicable laws. Depending on the facts and circumstances, the Company could be subject to significant civil, criminal, and administrative
penalties if the Company obtains, uses, or discloses individually identifiable health information maintained by entities covered by applicable
health and data protection laws in a manner that is not authorized or permitted by such laws.

 

Compliance with privacy and data protection laws
and regulations could require the Company to take on more onerous obligations in the Company’s contracts, restrict the Company’s
ability to collect, use and disclose data, or in some cases, impact the Company’s ability to operate in certain jurisdictions. Failure
to comply with these laws and regulations could result in government enforcement actions (which could include civil, criminal and administrative
penalties), private litigation, or adverse publicity and could negatively affect the Company’s operating results and business. Moreover,
clinical trial subjects, employees and other individuals about whom the Company or its potential collaborators obtain personal information,
as well as the providers who share this information with the Company, may limit the Company’s ability to collect, use and disclose
the information. Claims that the Company has violated individuals’ privacy rights, failed to comply with data protection laws, or
breached the Company’s contractual obligations, even if the Company is not found liable, could be expensive and time-consuming to
defend and could result in adverse publicity that could harm the Company’s business.

 

If the Company is not able to establish, maintain
and enhance the Company’s reputation and brand recognition, the Company’s business, financial condition and results of operations
will be harmed

 

MindMed believes that establishing, maintaining
and enhancing the Company’s reputation and brand recognition is critical to the Company’s relationships with existing and
future therapists, patients and collaborators. The promotion of the Company’s brand may require it to make substantial investments
and MindMed anticipates that, as its market becomes increasingly competitive, these marketing initiatives may become increasingly difficult
and expensive. Brand promotion and marketing activities may not be successful or yield increased revenue, and to the extent that these
activities yield increased revenue, the increased revenue may not offset the expenses the Company incurs and the Company’s business,
financial condition and results of operations could be harmed. In addition, any factor that diminishes the Company’s reputation
or that of its management, including failing to meet the expectations of its network of therapists, patients and collaborators, could
harm its reputation and brand and make it substantially more difficult for the Company to attract new therapists, patients and collaborators.
If the Company does not successfully establish, maintain and enhance the Company’s reputation and brand recognition, its business
may not grow and the Company could lose its relationships with therapists, patients and collaborators, which would harm the Company’s
business, financial condition and results of operations.

 

    27

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

Because MindMed is subject to environmental,
health and safety laws and regulations, the Company may become exposed to liability and substantial expenses in connection with environmental
compliance or remediation activities which may adversely affect the Company’s business and financial condition

 

The Company’s operations, including its
research, development and testing, although primarily conducted by third parties, are nonetheless subject to numerous foreign, federal,
state, provincial and local environmental, health and safety laws and regulations. These laws and regulations govern, among other things,
the controlled use, handling, release and disposal of and the maintenance of a registry for, hazardous materials, such as chemical solvents,
human cells, carcinogenic compounds, mutagenic compounds and compounds that have a toxic effect on reproduction, laboratory procedures
and exposure to blood-borne pathogens.

 

Although the Company contracts all manufacturing
to third parties, it may nonetheless incur significant costs to comply with current or future environmental and health and safety laws
and regulations. Furthermore, if the Company fails to comply with such laws and regulations, the Company could be subject to fines or
other sanctions. As with other companies engaged in similar activities, the Company faces a risk of environmental liability inherent in
its current and historical activities, including liability relating to releases of, or exposure to, hazardous materials and, as a result,
may incur material liability as a result of any such releases or exposures. Environmental, health and safety laws and regulations are
becoming more stringent. The Company may incur substantial expenses in connection with any current or future environmental compliance
or remediation activities, in which case, research and development efforts may be interrupted or delayed and the Company’s financial
condition and results of operations may be materially adversely affected. In the event of an accident involving hazardous materials, an
injured party may seek to hold the Company liable for any damages that result.

 

Unfavourable publicity or consumer perception
of psychedelic inspired medicine may have an adverse impact on the Company’s operational results, consumer base and financial results

 

The psychedelic drug industry is highly dependent
upon consumer perception regarding the safety, efficacy and quality of the psychedelic inspired medicinal applications. The success of
the industry in which the Company operates may be significantly influenced by the public’s perception of psychedelic inspired medicinal
applications. Consumer perception can be significantly influenced by scientific research or findings regarding the consumption of psychedelic
inspired products. There is no guarantee that future scientific research, publicity, regulations, medical opinion, and public opinion
relating to psychedelic inspired medicine will be favorable to the market or any particular product, or consistent with earlier research
or findings. The industry in which the Company operates is in its early stages and is constantly evolving, with no guarantee of viability.
The market for psychedelic inspired medicines is uncertain, and any adverse or negative publicity, scientific research, limiting regulations,
medical opinion and public opinion relating to the consumption of psychedelic inspired medicines may have a material adverse effect on
the Company’s operational results, consumer base and financial results. While the Company is focused on programs using psychedelic
inspired compounds, and does not advocate for the legalization of any psychedelic substances or deal with psychedelic substances except
within laboratory and clinical trial settings conducted within approved regulatory frameworks, any unfavourable publicity or consumer
perception regarding psychedelic substances (in addition to psychedelic inspired medicines) could also have a material adverse effect
on the Company’s operational results, consumer base and financial results.

 

In addition, research in Canada, the U.S.
and internationally regarding the medical benefits, viability, safety, efficacy and dosing of psychedelic drugs remains in early
stages. There have been relatively few clinical trials on the benefits. Although the Company believes that various articles, reports
and studies support its beliefs regarding the medical benefits, viability, safety, efficacy and dosing of psychedelic inspired
medicines, future research and clinical trials may prove such statements to be incorrect or could raise concerns. Future research
studies and clinical trials may draw opposing conclusions to those stated in this AIF management discussion and analysisor reach negative conclusions regarding the
medical benefits, viability, safety, efficacy, dosing, or other facts related to psychedelic inspired medicinal applications, which
could have a material adverse effect on the demand for the Company’s products, and therefore on its business, prospects,
revenue, results of operation and financial condition.

 

    28

     

    

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

The results of future clinical research may
be unfavorable to psychedelic inspired medicines, which may have a material adverse effect on the demand for the Company’s products

 

The
psychedelic drug industry is highly dependent upon consumer perception regarding the safety, efficacy and quality of the psychedelic inspired
medicinal applications. Consumer perception can be significantly influenced by scientific research or findings regarding the consumption
of psychedelic inspired products. There can be no assurance that future scientific research or findings will be favorable to the market
or any particular product, or consistent with earlier research or findings. Research in Canada, the U.S. and internationally regarding
the medical benefits, viability, safety, efficacy and dosing of psychedelic drugs remains in early stages. There have been relatively
few clinical trials on the benefits. Although the Company believes that various articles, reports and studies support the Company’s
beliefs regarding the medical benefits, viability, safety, efficacy and dosing of psychedelic inspired medicines, future research and
clinical trials may prove such statements to be incorrect or could raise concerns. Future research studies and clinical trials may draw
opposing conclusions to those stated in this management discussion and analysis or reach negative conclusions regarding the medical benefits,
viability, safety, efficacy, dosing, or other facts related to psychedelic inspired medicinal applications, which could have a material
adverse effect on the demand for the Company’s products, and therefore on its business, prospects, revenue, results of operation
and financial condition.

 

The Company may be subject to heightened scrutiny
by United States and Canadian authorities, which could ultimately lead to the market for Subordinate Voting Shares becoming highly illiquid
and the Company’s shareholders having no ability to effect trades in Subordinate Voting Shares

 

The 
Company’s Subordinate Voting Shares are traded on the NEO Exchange and on the OTCQB in the United States. The
Company’s business, operations and investments in the United States, and any future business, operations or investments, may
become the subject of heightened scrutiny by regulators, stock exchanges and other authorities in Canada and the United States. As a
result, the Company may be subject to significant direct and indirect interaction with public officials. There can be no assurance
that this heightened scrutiny will not in turn lead to the imposition of certain restrictions on the Company’s ability to
operate or invest in the United States or any other jurisdiction.

 

Information about the Company posted to social
media platforms may be inaccurate or adverse to the Company’s interests, each of which may harm the Company’s business, financial
condition and results of operations

 

There has been a recent marked increase in the
use of social media platforms and similar channels that provide individuals with access to a broad audience of consumers and other interested
persons. The availability and impact of information on social media platforms is virtually immediate and many social media platforms publish
user-generated content without filters or independent verification as to the accuracy of the content posted. Information posted about
the Company may be adverse to the Company’s interests or may be inaccurate, each of which may harm the Company’s business,
financial condition and results of operations.

 

The Company’s prospects depend on the
success of its product candidates which are at early stages of development, and it may not generate revenue for several years, if at all,
from these products

 

Given the early stage of the Company’s product
development, the Company can make no assurance that its research and development programs will result in regulatory approval or commercially
viable products. To achieve profitable operations, the Company, alone or with others, must successfully develop, gain regulatory approval
for, and market its future products. The Company currently has no products that have been approved by the FDA or any similar regulatory
authority in other countries. To obtain regulatory approvals for its product candidates that are in development and to achieve commercial
success, clinical trials must demonstrate that the product candidates are safe for human use and that they demonstrate efficacy. While
the Company has commenced clinical trials for 18-MC, the Company has not yet completed later stage clinical trials for any of its product
candidates.

 

Many product candidates never reach the stage
of clinical testing and even those that do have only a small chance of successfully completing clinical development and gaining regulatory
approval. Product candidates may fail for a number of reasons, including, but not limited to, being unsafe for human use or due to the
failure to provide therapeutic benefits equal to or better than the standard of treatment at the time of testing. Unsatisfactory results
obtained from a particular study relating to a research and development program may cause the Company or its collaborators to abandon
commitments to that program. Positive results of early preclinical research may not be indicative of the results that will be obtained
in later stages of preclinical or clinical research. Similarly, positive results from early-stage clinical trials may not be indicative
of favourable outcomes in later-stage clinical trials, and the Company can make no assurance that any future studies, if undertaken, will
yield favourable results.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.) 

Management’s Discussion and Analysis

 

The early stage of MindMed’s product development
makes it particularly uncertain whether any of its product development efforts will prove to be successful and meet applicable regulatory
requirements, and whether any of its product candidates will receive the requisite regulatory approvals, be capable of being manufactured
at a reasonable cost or be successfully marketed. If the Company is successful in developing its current and future product candidates
into approved products, the Company will still experience many potential obstacles, which would affect the Company’s ability to
successfully market and commercialize such approved products, such as the need to develop or obtain manufacturing, marketing and distribution
capabilities, price pressures from third-party payors, or proposed changes in health care systems. If the Company is unable to successfully
market and commercialize any of its products, its financial condition and results of operations may be materially and adversely affected.

 

The Company can make no assurance that any future
studies, if undertaken, will yield favorable results. Many companies in the pharmaceutical and biotechnology industries have suffered
significant setbacks in later-stage clinical trials after achieving positive results in early-stage development, and MindMed cannot be
certain that it will not face similar setbacks. These setbacks have been caused by, among other things, preclinical findings made while
clinical trials were underway or safety or efficacy observations made in clinical trials, including previously unreported adverse events.
Moreover, preclinical and clinical data are often susceptible to varying interpretations and analyses, and many companies that believed
their product candidates performed satisfactorily in preclinical studies and clinical trials nonetheless failed to obtain FDA or any
similar regulatory authority approval. If the Company fails to produce positive results in its future clinical trials of 18-MC, LSD and
other programs, the development timeline and regulatory approval and commercialization prospects for MindMed’s product candidates,
and, correspondingly, its business and financial prospects, would be materially adversely affected.

 

The Company relies and will continue to rely
on third parties to plan, conduct and monitor its preclinical studies and clinical trials, and its failure to perform as required could
cause substantial harm to its business

 

The Company relies and will continue to rely
on third parties to conduct a significant portion of its preclinical and clinical development activities. Preclinical activities include
in vivo studies providing access to specific disease models, pharmacology and toxicology studies, and assay development. Clinical development
activities include trial design, regulatory submissions, clinical patient recruitment, clinical trial monitoring, clinical data management
and analysis, safety monitoring and project management. If there is any dispute or disruption in the Company’s relationship with
third parties, or if it is unable to provide quality services in a timely manner and at a feasible cost, MindMed’s active development
programs will face delays. Further, if any of these third parties fail to perform as the Company expects or if their work fails to meet
regulatory requirements, MindMed’s testing could be delayed, cancelled or rendered ineffective. 

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

The Company is likely to be reliant on third parties to implement and staff the Albert digital medicine division plan, and its failure
to attract third parties to build out the division could cause substantial harm to its business 

 

The
Albert digital medicine division aims to have a team of technologists, therapists, and clinical drug development experts to help the
Company research, develop and build an integrated technical platform and comprehensive toolset aimed at delivering psychedelic inspired
medicines and therapies combined with digital therapeutics. Many of these experts will be external third parties to the Company, and
the Company will aggregate these various parties and potential therapies for a significant portion of these therapies. If there is any
dispute or disruption in the Company’s relationship with third parties, or if they are unable to provide quality services in a
timely manner and at a feasible cost, the development of the Albert division could face delays. Further, if any of these third parties
fail to perform as the Company expects, or if their work fails to meet regulatory requirements, or if MindMed is unable to attract third
parties to participate in Albert, or if they are unable to meet the Company’s timetable and requirements, the Company may be delayed
in the development of its Albert division or may not be able to develop it at all. 

 

Additionally, arrangements with third parties,
collaborations and in-licenses could involve numerous risks, including, but not limited to: 

 

(1)        substantial cash expenditures; 

(2)        technology
development risks;

 (3)        difficulties in assimilating the products, therapies and offerings of the third parties; and 

(4)        diverting the
Company’s management’s attention away from other business concerns. 

 

The process of drug development activities
is dependent on a number of factors, and any unforeseen disruption could negatively impact the Company’s ability to make regulatory
submissions, initiate nonclinical or clinical studies, or meet other development milestones

 

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 \

 

MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

The progress of drug development activities,
including the supply of investigational material, is dependent on a number of factors, including but not limited to: availability of
starting materials, solvents, reagents, excipients, manufacturing components, container closure systems, labels, fillers and other supplies;
identification of qualified vendors to perform manufacturing and analytical activities under current Good Manufacturing Practices (“cGMPs”);
qualification of such vendors under MindMed’s quality management systems; availability of manufacturing and analytical facilities,
personnel and documentation to facilitate completion of manufacturing and analytical activities under cGMPs; analysis of investigational
materials under cGMPs; and the stability of investigational material, which is subject to change over time. Lack of availability of required
components, or disruption or changes in schedules, or any other unforeseen disruption, including those that are outside of MindMed’s
control, of one or more of these dependencies could result in delays or failures in manufacturing campaigns. As a result, any such disruptions
could negatively impact the Company’s ability to make regulatory submissions, initiate nonclinical or clinical studies, or meet
other development milestones, all of which could negatively affect MindMed’s operating results and business.

 

The Company relies on contract manufacturers
over whom it has limited control. If the Company is subject to quality, cost or delivery issues with the preclinical and clinical grade
materials supplied by contract manufacturers, its business operations could suffer significant harm

 

The Company has limited manufacturing experience
and relies on CMOs to manufacture its product candidates for preclinical studies and clinical trials. MindMed relies on CMOs for manufacturing,
filling, packaging, storing and shipping of drug product in compliance with current GMP regulations applicable to its products. The FDA
and similar regulatory authorities in other countries ensure the quality of drug products by carefully monitoring drug manufacturers’
compliance with GMP regulations. The GMP regulations for drugs contain minimum requirements for the methods, facilities and controls used
in manufacturing, processing and packing of a drug product.

 

There can be no assurances that CMOs will be able
to meet the Company’s timetable and requirements. The Company has not contracted with alternate suppliers for 18-MC and LSD drug
substance production in the event that the current provider is unable to scale up production, or if it otherwise experiences any other
significant problems. If the Company is unable to arrange for alternative third-party manufacturing sources on commercially reasonable
terms or in a timely manner, the Company may be delayed in the development of its product candidates. Further, CMOs must operate in compliance with GMP and failure to
do so could result in, among other things, the disruption of product supplies. The Company’s dependence
upon third parties for the manufacture of its products may adversely affect its profit margins and its ability to develop and deliver
products on a timely and competitive basis.

 

The Company requires commercial scale and quality
manufactured product to be available for pivotal or registration clinical trials. If the Company does not have commercial grade drug supply
when needed, it may face delays in initiating or completing pivotal trials and its business operations could suffer significant harm

 

To date, the Company’s product has been
manufactured in small quantities for preclinical studies and clinical trials by third party manufacturers. In order to commercialize its
product, the Company needs to manufacture commercial quality drug supply for use in registration clinical trials. Most, if not all, of
the clinical material used in phase 3/pivotal/registration studies must be derived from the defined commercial process including scale,
manufacturing site, process controls and batch size. If MindMed has not scaled up and validated the commercial production of its product
prior to the commencement of pivotal clinical trials, it may have to employ a bridging strategy during the trial to demonstrate equivalency
of early stage material to commercial drug product, or potentially delay the initiation or completion of the trial until drug supply is
available. The manufacturing of commercial quality drug product has long lead times, is very expensive and requires significant efforts
including, but not limited to, scale-up of production to anticipated commercial scale, process characterization and validation, analytical
method validation, identification of critical process parameters and product quality attributes, and multiple process performance and
validation runs. If the Company does not have commercial drug supply available when needed for pivotal clinical trials, MindMed’s
regulatory and commercial progress may be delayed, and it may incur increased product development costs. This may have a material adverse
effect on the Company’s business, financial condition and prospects, and may delay marketing of the product.

 

If clinical trials of the Company’s product
candidates fail to demonstrate safety and efficacy to the satisfaction of regulatory authorities or do not otherwise produce positive
results, the Company would incur additional costs or experience delays in completing, or ultimately be unable to complete, the development
and commercialization of its product candidates

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

Before obtaining marketing approval from regulatory
authorities for the sale of the Company’s product candidates, MindMed must conduct preclinical studies in animals and extensive
clinical trials in humans to demonstrate the safety and efficacy of the product candidates. Clinical testing is expensive and difficult
to design and implement, can take many years to complete and has uncertain outcomes. The outcome of preclinical studies and early clinical
trials may not predict the success of later clinical trials, and interim results of a clinical trial do not necessarily predict final
results. A number of companies in the pharmaceutical and biotechnology industries have suffered significant setbacks in advanced clinical
trials due to lack of efficacy or unacceptable safety profiles, notwithstanding promising results in earlier trials. The Company does
not know whether the clinical trials it may conduct will demonstrate adequate efficacy and safety to result in regulatory approval to
market any of its product candidates in any jurisdiction. A product candidate may fail for safety or efficacy reasons at any stage of
the testing process. A major risk the Company faces is the possibility that none of its product candidates under development will successfully
gain market approval from the FDA or other regulatory authorities, resulting in the Company being unable to derive any commercial revenue
from them after investing significant amounts of capital in their development.

 

If the Company experiences delays in clinical
testing, it will be delayed in commercializing its product candidates, and its business may be substantially harmed

 

The Company cannot predict whether any clinical
trials will begin as planned, will need to be restructured, or will be completed on schedule, or at all. The Company’s product development
costs will increase if it experiences delays in clinical testing. Significant clinical trial delays could shorten any periods during which
the Company may have the exclusive right to commercialize its product candidates or allow its competitors to bring products to market
before MindMed, which would impair the Company’s ability to successfully commercialize its product candidates and may harm its financial
condition, results of operations and prospects. The commencement and completion of clinical trials for MindMed’s products may be
delayed for a number of reasons, including delays related, but not limited, to:

 

		(1)	failure by regulatory authorities to grant permission to proceed or placing the clinical trial on hold;

 

		(2)	patients failing to enroll or remain in the Company’s trials at the rate the Company expects;

 

		(3)	suspension or termination of clinical trials by regulators for many reasons, including concerns about
patient safety or failure of the Company’s CMOs to comply with GMP requirements;

 

		(4)	any changes to the Company’s manufacturing process that may be necessary or desired;

 

		(5)	delays or failure to obtain clinical supply from CMOs of the Company’s products necessary to conduct
clinical trials;

 

		(6)	product candidates demonstrating a lack of safety or efficacy during clinical trials;

 

		(7)	patients choosing an alternative treatment for the indications for which the Company is developing any
of its product candidates or participating in competing clinical trials;

 

		(8)	patients failing to complete clinical trials due to dissatisfaction with the treatment, side effects or
other reasons;

 

		(9)	reports of clinical testing on similar technologies and products raising safety or efficacy concerns;

 

		(10)	competing clinical trials and scheduling conflicts with participating clinicians;

 

		(11)	clinical investigators not performing the Company’s clinical trials on their anticipated schedule,
dropping out of a trial, or employing methods not consistent with the clinical trial protocol, regulatory requirements or other third
parties not performing data collection and analysis in a timely or accurate manner;

 

		(12)	failure of the Company’s contract research organizations (“CROs”) to satisfy their contractual
duties or meet expected deadlines;

 

		(13)	inspections of clinical trial sites by regulatory authorities, institutional review boards (“IRBs”)
or ethics committees finding regulatory violations that require the Company to undertake corrective action, resulting in suspension or
termination of one or more sites or the imposition of a clinical hold on the entire study;

 

		(14)	one or more IRBs or ethics committees rejecting, suspending or terminating the study at an investigational
site, precluding enrollment of additional subjects, or withdrawing the Company’s approval of the trial; or

 

		(15)	failure to reach agreement on acceptable terms with prospective clinical trial sites.

 

MindMed’s product development costs will
increase if it experiences delays in testing or approval or if the Company needs to perform more or larger clinical trials than planned.
Additionally, changes in regulatory requirements and policies may occur, and the Company may need to amend study protocols to reflect
these changes. Amendments may require the Company to resubmit its study protocols to regulatory authorities or IRBs or ethics committees
for re-examination, which may impact the cost, timing or successful completion of that trial. Delays or increased product development
costs may have a material adverse effect on the Company’s business, financial condition and prospects.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

The Company may not be able to file investigational
new drug applications to commence additional clinical trials on the timelines it expects, and even if the Company is able to, the FDA
or similar regulatory authorities may not permit the Company to proceed in a timely manner, or at all

 

Prior to commencing clinical trials in the United
States or other jurisdictions, including Australia, Switzerland and the Netherlands, for any of the Company’s product candidates,
MindMed may be required to have an allowed IND (or equivalent) for each product candidate and to file additional INDs prior to initiating
any additional clinical trials for 18-MC, LSD or other psychedelic substances. The Company believes that the data from previous studies
will support the filing of additional INDs to enable MindMed to undertake additional clinical studies as it has planned. However, submission
of an IND (or equivalent) may not result in the FDA (or equivalent authorities) allowing further clinical trials to begin and, once begun,
issues may arise that will require MindMed to suspend or terminate such clinical trials. Additionally, even if relevant regulatory authorities
agree with the design and implementation of the clinical trials set forth in an IND, these regulatory authorities may change their requirements
in the future. Failure to submit or have effective INDs (or equivalent) and commence or continue clinical programs will significantly
limit the Company’s opportunity to generate revenue.

 

If the Company has difficulty enrolling patients
in clinical trials, the completion of the trials may be delayed or cancelled

 

As the Company’s product candidates advance
from preclinical testing to clinical testing, and then through progressively larger and more complex clinical trials, the Company will
need to enroll an increasing number of patients that meet its eligibility criteria. There is significant competition for recruiting patients
in clinical trials, and MindMed may be unable to enroll the patients it needs to complete clinical trials on a timely basis or at all.
The factors that affect the Company’s ability to enroll patients are largely uncontrollable and include, but are not limited to,
the following:

 

		(1)	size and nature of the patient population;

 

		(2)	eligibility and exclusion criteria for the trial;

 

		(3)	design of the study protocol;

 

		(4)	competition with other companies for clinical sites or patients;

 

		(5)	the perceived risks and benefits of the product candidate under study;

 

		(6)	the patient referral practices of physicians; and

 

		(7)	the number, availability, location and accessibility of clinical trial sites.

 

Regulatory approval processes are lengthy,
expensive and inherently unpredictable. The Company’s inability to obtain regulatory approval for its product candidates would substantially
harm its business

 

The Company’s development and commercialization
activities and product candidates are significantly regulated by a number of governmental entities, including the FDA and comparable authorities
in other countries, including Australia, Switzerland and the Netherlands. Regulatory approvals are required prior to each clinical trial
and the Company may fail to obtain the necessary approvals to commence or continue clinical testing. MindMed must comply with regulations
concerning the manufacture, testing, safety, effectiveness, labeling, documentation, advertising, and sale of products and product candidates
and ultimately must obtain regulatory approval before it can commercialize a product candidate. The time required to obtain approval by
such regulatory authorities is unpredictable but typically takes many years following the commencement of preclinical studies and clinical
trials. Any analysis of data from clinical activities the Company performs is subject to confirmation and interpretation by regulatory
authorities, which could delay, limit or prevent regulatory approval. Even if the Company believes results from its clinical trials are
favorable to support the marketing of its product candidates, the FDA or other regulatory authorities may disagree. In addition, approval
policies, regulations, or the type and amount of clinical data necessary to gain approval may change during the course of a product candidate’s
clinical development and may vary among jurisdictions. The Company has not obtained regulatory approval for any product candidate and
it is possible that none of its existing product candidates or any future product candidates will ever obtain regulatory approval.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

MindMed could fail to receive regulatory approval
for its product candidates for many reasons, including, but not limited to:

 

		(1)	disagreement with the design or implementation of its clinical trials;

 

		(2)	failure to demonstrate that a product candidate is safe and effective for the Company’s proposed
indication;

 

		(3)	failure of clinical trials to meet the level of statistical significance required for approval;

 

		(4)	failure to demonstrate that a product candidate’s clinical and other benefits outweigh the Company’s
safety risks;

 

		(5)	disagreement with the Company’s interpretation of data from preclinical studies or clinical trials;

 

		(6)	the insufficiency of data collected from clinical trials of the Company’s product candidates to
support the submission and filing of an IND or other submission to obtain regulatory approval;

 

		(7)	deficiencies in the manufacturing processes or the failure of facilities of CMOs with whom the Company
contracts for clinical and commercial supplies to pass a pre-approval inspection; or

 

		(8)	changes in the approval policies or regulations that render the Company’s preclinical and clinical
data insufficient for approval.

 

A regulatory authority may require more information,
including additional preclinical or clinical data to support approval, which may delay or prevent approval and the Company’s commercialization
plans, or the Company may decide to abandon the development program. If the Company were to obtain approval, regulatory authorities may
approve any of its product candidates for fewer or more limited indications than the Company requested, may grant approval contingent
on the performance of costly post-marketing clinical trials, or may approve a product candidate with a label that does not include the
labeling claims necessary or desirable for the successful commercialization of that product candidate. Moreover, depending on any safety
issues associated with the Company’s product candidates that garner approval, the FDA or similar regulatory authorities in other
countries may impose a risk evaluation and mitigation strategy, thereby imposing certain restrictions on the sale and marketability of
such products.

 

The Company may not achieve its publicly announced
milestones according to schedule, or at all

 

From time to time, the Company may announce the
timing of certain events it expects to occur, such as the anticipated timing of results from its clinical trials. These statements are
forward-looking and are based on the best estimates of management at the time relating to the occurrence of such events. However, the
actual timing of such events may differ from what has been publicly disclosed. The timing of events such as initiation or completion of
a clinical trial, filing of an application to obtain regulatory approval, or announcement of additional clinical trials for a product
candidate may ultimately vary from what is publicly disclosed. These variations in timing may occur as a result of different events, including
the nature of the results obtained during a clinical trial or during a research phase, timing of the completion of clinical trials, problems
with a CMO or a CRO or any other event having the effect of delaying the publicly announced timeline. The Company undertakes no obligation
to update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise,
except as otherwise required by law. Any variation in the timing of previously announced milestones could have a material adverse effect
on the Company’s business plan, financial condition or operating results and the trading price of the Subordinate Voting Shares.

 

The Company faces competition from other biotechnology
and pharmaceutical companies and its financial condition and operations will suffer if it fails to effectively compete

 

The biotechnology and pharmaceutical industries
are intensely competitive and subject to rapid and significant technological change. The Company’s competitors include large, well-established
pharmaceutical companies, biotechnology companies, academic and research institutions developing therapeutics for the same indications
the Company is targeting and competitors with existing marketed therapies. Many other companies are developing or commercializing therapies
to treat the same diseases or indications for which MindMed’s product candidates may be useful. 

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

Many of the Company’s competitors have
substantially greater financial, technical and human resources than MindMed does and have significantly greater experience than MindMed
in conducting preclinical testing and human clinical trials of product candidates, scaling up manufacturing operations and obtaining
regulatory approvals of products. Accordingly, the Company’s competitors may succeed in obtaining regulatory approval for products
more rapidly than MindMed does. The Company’s ability to compete successfully will largely depend on:

 

		(1)	the efficacy and safety profile of its product candidates relative to marketed products and other product
candidates in development;

 

		(2)	MindMed’s ability to develop and maintain a competitive position in the product categories and technologies
on which it focuses;

 

		(3)	the time it takes for MindMed’s product candidates to complete clinical development and receive
marketing approval;

 

		(4)	MindMed’s ability to obtain required regulatory approvals;

 

		(5)	MindMed’s ability to commercialize any of its product candidates that receive regulatory approval;

 

		(6)	MindMed’s ability to establish, maintain and protect intellectual property rights related to its
product candidates; and

 

		(7)	acceptance of any of MindMed’s product candidates that receive regulatory approval by physicians
and other healthcare providers and payers.

 

Competitors have developed and may develop
technologies that could be the basis for products that challenge the discovery research capabilities of 18-MC, LSD or other products
MindMed is developing. Some of those products may have an entirely different approach or means of accomplishing the desired
therapeutic effect than MindMed’s product candidates and may be more effective or less costly than its product candidates. The
success of the Company’s competitors and their products candidates relative to MindMed’s technological capabilities and
competitiveness could have a material adverse effect on the future preclinical studies and clinical trials of MindMed’s
product candidates, including its ability to obtain the necessary regulatory approvals for the conduct of such clinical trials. This
may further negatively impact MindMed’s ability to generate future product development programs using 18-MC, LSD or other
psychedelic inspired compounds.

 

If the Company is not able to compete effectively
against its current and future competitors, MindMed’s business will not grow, and its financial condition and operations will substantially
suffer.

 

The Company heavily relies on the capabilities
and experience of its key executives and scientists and the loss of any of them could affect the Company’s ability to develop its
products

 

The loss of any of the Company’s key executives
or other key members of the Company’s staff could harm MindMed. The Company also depends on its scientific and clinical collaborators
and advisors, all of whom have outside commitments that may limit their availability to the Company. In addition, MindMed believes that
its future success will depend in large part upon its ability to attract and retain highly skilled scientific, managerial, medical, manufacturing,
clinical and regulatory personnel, particularly as MindMed expands its activities and seeks regulatory approvals for clinical trials.
The Company enters into agreements with its scientific and clinical collaborators and advisors, key opinion leaders and academic partners
in the ordinary course of its business. The Company also enters into agreements with physicians and institutions who will recruit patients
into MindMed’s clinical trials on its behalf in the ordinary course of its business. Notwithstanding these arrangements, the Company
faces significant competition for these types of personnel from other companies, research and academic institutions, government entities
and other organizations. The Company cannot predict its success in hiring or retaining the personnel it requires for continued growth.
The loss of the services of any of the Company’s executive officers or other key personnel could potentially harm its business,
operating results or financial condition.

 

The Company’s employees, contractors,
consultants and agents may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements,
which could have a material adverse effect on its business

 

The Company is exposed to the risk that
employees, independent contractors and consultants may engage in fraud, illegal activity, fraud, or other misconduct. Misconduct by
employees, contractors and consultants could include failures to comply with FDA and similar regulations, provide accurate
information to the FDA or similar regulatory authorities in other countries, comply with manufacturing standards the Company has
established, comply with federal and state healthcare fraud and abuse laws and regulations, report financial information or data
accurately or disclose unauthorized activities to the Company. In particular, sales, marketing and business arrangements in the
healthcare industry are subject to extensive laws and regulations intended to prevent fraud, kickbacks, self-dealing, and other
abusive practices. These laws and regulations may restrict or prohibit a wide range of pricing, discounting, marketing and
promotion, sales commission, customer incentive programs and other business arrangements. Employee misconduct could also involve the
improper use of information obtained in the course of clinical trials, which could result in regulatory sanctions and serious harm
to the Company’s reputation. It may not always be possible for the Company to identify and prevent misconduct by the
Company’s employees and other third parties, and the precautions taken by the Company to detect and prevent this activity may
not be effective in controlling unknown or unmanaged risks or losses or in protecting the Company from governmental investigations
or other actions or lawsuits stemming from a failure to be in compliance with such laws or regulations. The Company cannot provide
assurance that the Company’s internal controls and compliance systems will protect the Company from acts committed by the
Company’s employees, agents or business partners in violation of U.S. federal or state or local laws or the laws of other
jurisdictions in which the Company operates. If any such actions are instituted against the Company, and MindMed is not successful
in defending itself or asserting the Company’s rights, those actions could have a substantial impact on the Company’s
business and results of operations, including the imposition of substantial fines or other sanctions.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

The Company may expand its business through
the acquisition of companies or businesses or by entering into collaborations or by in-licensing product candidates, each of which could
disrupt the Company’s business and harm its financial condition

 

The Company has in the past and may in the future
seek to expand its pipeline and capabilities by acquiring one or more companies or businesses, entering into collaborations, or in-licensing
one or more product candidates. Acquisitions, collaborations and in-licenses involve numerous risks, including, but not limited to:

 

		(1)	substantial cash expenditures;

 

		(2)	technology development risks;

 

		(3)	potentially dilutive issuances of equity securities;

 

		(4)	incurrence of debt and contingent liabilities, some of which may be difficult or impossible to identify
at the time of acquisition;

 

		(5)	difficulties in assimilating the operations of the acquired companies;

 

		(6)	potential disputes regarding contingent consideration;

 

		(7)	diverting the Company’s management’s attention away from other business concerns;

 

		(8)	entering markets in which the Company has limited or no direct experience; and

 

		(9)	potential loss of the Company’s key employees or key employees of the acquired companies or businesses.

 

The Company has experience in making acquisitions,
entering collaborations and in-licensing product candidates; however, the Company cannot provide assurance that any acquisition, collaboration
or in-license will result in short-term or long-term benefits to it. The Company may incorrectly judge the value or worth of an acquired
company or business or in-licensed product candidate. In addition, MindMed’s future success would depend in part on its ability
to manage the rapid growth associated with some of these acquisitions, collaborations and in-licenses. The Company cannot provide assurance
that it would be able to successfully combine its business with that of acquired businesses, manage a collaboration or integrate in-licensed
product candidates. Furthermore, the development or expansion of the Company’s business may require a substantial capital investment
by the Company.

 

Acquisitions involve risks that the acquired
business will not perform as expected and that business judgments concerning the value, strengths and weaknesses of the acquired
business will prove incorrect. In addition, potential acquisition targets may be in states in which the Company does not currently
operate, which could result in unforeseen operating difficulties and difficulties in coordinating geographically dispersed
operations, personnel and facilities. In addition, if the company enters into new geographic markets, it   may be subject to
additional and unfamiliar legal and regulatory requirements. Acquired businesses may have unaudited financial statements that have
been prepared by management and have not been independently reviewed or audited. The Company cannot guarantee that such financial
statements would not be materially different if such statements were independently reviewed or audited. The Company cannot guarantee
that it  will, or will continue to, acquire businesses at valuations consistent with prior acquisitions or that it will complete
future acquisitions at all. The Company cannot guarantee that there will be attractive acquisition opportunities at reasonable
prices, that financing will be available or that it can successfully integrate acquired businesses into existing operations. In
addition, the results of operations from these acquisitions could, in the future, result in impairment charges for any of the
Company’s intangible assets, including goodwill or other long-lived assets, particularly if economic conditions worsen
unexpectedly. The Company’s inability to effectively manage the integration of its completed and future acquisitions could
prevent it from realizing expected rates of return on an acquired business and could have a material and adverse effect on the
Company’s financial condition, results of operations or liquidity.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

The Company may invest in pre-revenue companies
which may not be able to meet anticipated revenue targets in the future

 

We
have made and may in the future make investments in companies with no significant sources of operating cash flow and no revenue from operations.
The Company’s investments in such companies will be subject to risks and uncertainties that new companies with no operating history
may face. In particular, there is a risk that the Company’s investment in these pre-revenue companies will not be able to
meet anticipated revenue targets or will generate no revenue at all, or such underperforming pre-revenue companies may fail, which could
have a material adverse effect on the Company’s business, prospects, revenue, results of operation and financial condition.

 

Negative results from clinical trials or studies
of others and adverse safety events involving the targets of the Company’s products may have an adverse impact on the Company’s
future commercialization efforts

 

From time to time, studies or clinical trials
on various aspects of biopharmaceutical products are conducted by academic researchers, competitors or others. The results of these studies
or trials, when published, may have a significant effect on the market for the biopharmaceutical product that is the subject of the study.
The publication of negative results of studies or clinical trials or adverse safety events related to the Company’s product candidates,
or the therapeutic areas in which the Company’s product candidates compete, could adversely affect its share price and MindMed’s
ability to finance future development of its product candidates, and its business and financial results could be materially and adversely
affected.

 

The Company faces risks related to the novelty
of the psychedelic inspired medicines industry, and the resulting lack of information regarding comparable companies, unanticipated expenses,
difficulties and delays, and the offering of new products and services in an untested market

 

As a relatively new industry, there are not many
established players in the psychedelic inspired medicines industry whose business model the Company can emulate. Similarly, there is little information
about comparable companies available for potential investors to review in making a decision about whether to invest in the Company.

 

Shareholders
and investors should consider, among other factors, the Company’s prospects for success in light of the risks and uncertainties
encountered by companies, like MindMed, that are in their early stages. For example, unanticipated expenses and problems or technical difficulties
may occur, which may result in material delays in the operation of the Company’s business. The Company fails to successfully address
these risks and uncertainties or successfully implement the Company’s operating strategies. If the Company fails to do so, it could materially
harm the Company’s business to the point of having to cease operations and could impair the value of the Subordinate Voting Shares
to the point where investors may lose their entire investments.

 

The Company has committed and expects to continue
committing significant resources and capital to develop and market new products and services. These products and services are relatively
untested in the marketplace, and the Company cannot provide assurance that it will achieve market acceptance for these products and services.
Moreover, these products and services may be subject to significant competition from offerings by new and existing competitors in the
business. In addition, new products and services may pose a variety of challenges and require the Company to attract additional qualified
employees. The failure to successfully develop and market these new products and services could materially harm the Company’s business,
prospects, revenue, results of operation and financial condition.

 

The Company faces the risk of product liability
claims, which could exceed its insurance coverage, and product recalls, each of which could deplete the Company’s cash resources

 

The Company is exposed to the risk of product
liability claims alleging that use of its product candidates caused an injury or harm. These claims can arise at any point in the development,
testing, manufacture, marketing or sale of MindMed’s product candidates and may be made directly by patients involved in clinical
trials of its product candidates, by consumers or healthcare providers or by individuals, organizations or companies selling its products.
Product liability claims can be expensive to defend, even if the product or product candidate did not actually cause the alleged injury
or harm.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

Insurance covering product liability claims becomes
increasingly expensive as a product candidate moves through the development pipeline to commercialization. MindMed currently maintains
clinical trial liability insurance coverage; however, there can be no assurance that such insurance coverage is or will continue to be
adequate or available to the Company at a cost acceptable to it or at all. The Company may choose or find it necessary under its collaborative
agreements to increase its insurance coverage in the future. The Company may not be able to secure greater or broader product liability
insurance coverage on acceptable terms or at reasonable costs when needed. Any liability for damages resulting from a product liability
claim could exceed the amount of its coverage, require the Company to pay a substantial monetary award from MindMed’s own cash
resources and have a material adverse effect on its business, financial condition and results of operations. Moreover, a product recall,
if required, could generate substantial negative publicity about its products and business, inhibit or prevent commercialization of other
products and product candidates or negatively impact existing or future collaborations.

 

If the Company is unable to maintain product
liability insurance required by its third parties, the corresponding agreements would be subject to termination, which could have a material
adverse impact on its operations

 

Some of the Company’s licensing and other
agreements with third parties require or might require it to maintain product liability insurance. If the Company cannot maintain acceptable
amounts of coverage on commercially reasonable terms in accordance with the terms set forth in these agreements, the corresponding agreements
would be subject to termination, which could have a material adverse impact on its operations.

 

The Company faces risks related to its information
technology systems, including potential cyber-attacks and security and privacy breaches

 

The Company’s technology is critical in
its continued operations. The Company is susceptible to operational, financial and information security risks resulting from cyber-attacks
or technological malfunctions. Successful cyber-attacks or technological malfunctions affecting the Company, or its service providers,
can result in, among other things, financial losses, the inability to process transactions, the unauthorized release of customer information
or other confidential information and reputational risk. The Company has not experienced any material losses to date relating to cyber-attacks,
other information breaches or technological malfunctions. However, there can be no assurance that the Company will not incur such losses
in the future. As cybersecurity threats continue to evolve, the Company may be required to use additional resources to continue to modify
or enhance protective measures or to investigate and redress security vulnerabilities.

 

The Company is also subject to laws, rules and
regulations in the United States and other jurisdictions relating to the collection, production, storage, transfer and use of personal
data. The Company may store and collect personal information. It is the Company’s responsibility to protect that information from
privacy breaches that may occur through procedural or process failure, information technology malfunction or deliberate, unauthorized
intrusions. Any such theft or privacy breach could have a material adverse effect on the Company’s business, prospects, revenue,
results of operation and financial condition. Additionally, the Company’s ability to execute transactions and to possess and use
personal information and data in conducting the Company’s business subjects it to legislative and regulatory burdens that may require
it to notify regulators or other individuals of a data security breach. Evolving compliance and operational requirements under the privacy
laws, rules and regulations of jurisdictions in which the Company operates impose significant costs that are likely to increase over
time. In addition, non-compliance could result in proceedings against the Company by governmental entities or the imposition of significant
fines, could negatively impact the Company’s reputation and may otherwise materially, adversely impact the Company’s business,
financial condition and operating results.

 

The effects of the outbreak of infectious disease
could materially negatively impact the Company’s operations

 

Emerging infectious diseases or the threat of
outbreaks of viruses or other contagions or epidemic diseases could have a material adverse effect on the Company. The outbreak of the
novel strain of coronavirus, specifically identified as “COVID-19”, has resulted in governments worldwide enacting emergency
measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods
and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Global equity markets
have experienced significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal
interventions designed to stabilize economic conditions. The duration and impact of the COVID-19 outbreak is unknown at this time, as
is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these
developments and the impact on the financial results and condition of the Company and its operating subsidiaries in future periods. However,
depending on the length and severity of the pandemic, COVID-19 could impact the Company’s operations, could cause delays relating
to approval from the FDA and equivalent organizations in other countries, could postpone research activities, could impair the Company’s
ability to raise funds depending on COVID-19’s effect on capital markets, and could affect logistics and the Company’s ability
to move materials in a timely manner to clinical trial sites or production of GMP materials (which availability of GMP materials may also
impact clinical trial timelines).

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

The Company relies on third parties to conduct
and monitor the Company’s pre-clinical studies and clinical trials. However, to the knowledge of the Company’s management,
the ability of these third parties to conduct and monitor pre-clinical studies and clinical trials has not been and is not anticipated
to be impacted by COVID-19. The Company is not currently aware of any changes in laws, regulations or guidelines, including tax and accounting
requirements, arising from COVID-19 which would be reasonably anticipated to materially affect the Company’s business.

 

The Company has a limited operating history

 

The Company has a limited history of operations
and will be in an early stage of development as it attempts to create an infrastructure to capitalize on the opportunity for value creation
in the psychedelics medicines industry. Accordingly, the Company is subject to many of the risks common to early-stage enterprises, including
under-capitalization, cash shortages, limitations with respect to personnel, financial and other resources and lack of revenue. The limited
operating history may also make it difficult for investors to evaluate the Company’s prospects for success. There is no assurance
that the Company will be successful, and its likelihood of success must be considered in light of its early stage of operations.

 

The Company may not be able to achieve or maintain
profitability and may incur losses in the future. In addition, the Company is expected to increase its capital investments as it implements
initiatives to grow its business. If the Company’s revenues do not increase to offset these expected increases, the Company may
not generate positive cash flow. There is no assurance that future revenues will be sufficient to generate the funds required to continue
operations without external funding.

 

Investors in certain jurisdictions may have
difficulty in enforcing judgments and effecting service of process on the Company and its directors and officers

 

The enforcement by investors of civil liabilities
under the United States federal or state securities laws may be affected adversely by the fact that the Company is organized under the
laws of British Columbia, that some of the Company’s officers and directors are residents of countries other than the United States,
and that certain of their assets and of the Company’s assets are located outside the United States. It may not be possible for investors
to effect service of process within the United States on certain of its directors and officers or enforce judgments obtained in the United
States courts against the Company or certain of the Company’s directors and officers based upon the civil liability provisions of
United States federal securities laws or the securities laws of any state of the United States.

 

There is some doubt as to whether a judgment of
a United States court based solely upon the civil liability provisions of United States federal or state securities laws would be enforceable
in Canada against the Company or certain of its directors and officers. There is also doubt as to whether an original action could be
brought in Canada against the Company or certain of its directors and officers to enforce liabilities based solely upon United States
federal or state securities laws.

 

In addition, certain directors and officers of
the Company reside outside of Canada. Some or all of the assets of such persons may be located outside of Canada. Therefore, it may not
be possible for investors to collect or to enforce judgments obtained in Canadian courts predicated upon the civil liability provisions
of applicable Canadian securities laws against such persons. Moreover, it may not be possible for investors to effect service of process
within Canada upon such persons.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

Forward-looking statements may prove to be
inaccurate

 

Investors
should not place undue reliance on forward-looking statements. By their nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties, of both general and specific nature, that could cause actual results to differ materially from
those suggested by the forward-looking statements or contribute to the possibility that predictions, forecasts or projections will prove
to be materially inaccurate. Additional information on these risks, assumptions and uncertainties can be found in this management
discussion and analysis under the heading “Cautionary Statement Regarding Forward Looking Information”.

 

Risks Related to Intellectual Property

 

If the Company is unable to adequately protect
and enforce its intellectual property, the Company’s competitors may take advantage of its development efforts or acquired technology
and compromise its prospects of marketing and selling its key products

 

MindMed’s success will depend in part upon
its ability to protect its intellectual property and proprietary technologies and upon the nature and scope of the intellectual property
protection the Company receives. The ability to compete effectively and to achieve partnerships will depend on its ability to develop
and maintain proprietary aspects of MindMed’s technology and to operate without infringing on the proprietary rights of others.
The presence of such proprietary rights of others could severely limit its ability to develop and commercialize its products, to conduct
its existing research and could require financial resources to defend litigation, which may be in excess of MindMed’s ability to
raise such funds. There is no assurance that the Company’s pending patent applications or those that it intends to acquire will
be approved in a form that will be sufficient to protect its proprietary technology and gain or keep any competitive advantage that the
Company may have or, if approved, will be upheld in any post-grant proceedings brought by any third parties.

 

The patent positions of pharmaceutical companies
can be highly uncertain and involve complex legal, scientific and factual questions for which important legal principles remain unresolved.
Patents issued to the Company or its respective licensors may be challenged, invalidated or circumvented. To the extent MindMed’s
intellectual property, including licensed intellectual property, offers inadequate protection, or is found to be invalid or unenforceable,
MindMed is exposed to a greater risk of direct competition. If the Corpoation’s intellectual property does not provide adequate
protection against the Company’s competitors’ products, its competitive position could be adversely affected, as could MindMed’s
business, financial condition and results of operations. Both the patent application process and the process of managing patent disputes
can be time-consuming and expensive, and the laws of some foreign countries may not protect the Company’s intellectual property
rights to the same extent as do the laws of Canada and the United States.

 

The Company will be able to protect its intellectual
property from unauthorized use by third parties only to the extent that its proprietary technologies, key products, and any future products
are covered by valid and enforceable intellectual property rights including patents or are effectively maintained as trade secrets, and
provided the Company has the funds to enforce its rights, if necessary.

 

If the Company loses its licenses from third-party
owners, the Company may be unable to continue a substantial part of its business

 

The Company is a party to licenses that gives
its rights to intellectual property that are necessary or useful for a substantial part of its business. The Company may also enter into
licenses in the future to access additional third-party intellectual property. If the Company fails to pay annual maintenance fees, development
and sales milestones, or it is determined that MindMed does not use commercially reasonable efforts to commercialize licensed products,
MindMed could lose its licenses which could have a material adverse effect on its business and financial condition.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

The Company may require additional third-party
licenses to effectively develop and manufacture its key products and is currently unable to predict the availability or cost of such
licenses

 

A substantial number of patents have already been
issued to other biotechnology and pharmaceutical companies. To the extent that valid third-party patent rights cover MindMed’s products
or services, the Company, or its strategic collaborators, would be required to seek licenses from the holders of these patents in order
to manufacture, use or sell these products and services, and payments under them would reduce the Company’s profits from these products
and services. MindMed is currently unable to predict the extent to which the Company may wish or be required to acquire rights under such
patents, the availability and cost of acquiring such rights, and whether a license to such patents will be available on acceptable terms
or at all. There may be patents in the United States or in foreign countries or patents issued in the future that are unavailable to license
on acceptable terms. MindMed’s inability to obtain such licenses may hinder or eliminate its ability to manufacture and market its
products.

 

Changes in patent law and its interpretation
could diminish the value of patents in general, thereby impairing MindMed’s ability to protect its product candidates

 

As is the case with other biotechnology and pharmaceutical
companies, the Company’s success is heavily dependent on intellectual property rights, particularly patents. Obtaining and enforcing
patents in the biopharmaceutical industry involves technological and legal complexity, and obtaining and enforcing biopharmaceutical patents
is costly, time consuming and inherently uncertain. The U.S. Supreme Court has ruled on several patent cases in recent years, either narrowing
the scope of patent protection available in certain circumstances or weakening the rights of patent owners in certain situations. In addition
to increasing uncertainty with regard to MindMed and its licensors’ or collaborators’ ability to obtain patents in the future,
this combination of events has created uncertainty with respect to the value of patents, once obtained. Depending on decisions by the
U.S. Congress, the federal courts, and the U.S. Patent and Trademark Office (“USPTO”) the laws and regulations governing patents
could change in unpredictable ways that would weaken MindMed and its licensors’ or collaborators’ ability to obtain new patents
or to enforce existing patents and patents MindMed and its licensors or collaborators may obtain in the future.

 

Recent patent reform legislation could increase
the uncertainties and costs surrounding the prosecution of MindMed and its licensors’ or collaborators’ patent applications
and the enforcement or defense of MindMed or its licensors’ or collaborators’ issued patents. On September 16, 2011,
the Leahy-Smith America Invents Act (“Leahy-Smith Act”) was signed into law. The Leahy-Smith Act includes a number of significant
changes to United States patent law. These include provisions that affect the way patent applications are prosecuted and may also affect
patent litigation. The USPTO recently developed new regulations and procedures to govern administration of the Leahy-Smith Act, and many
of the substantive changes to patent law associated with the Leahy-Smith Act, and in particular, the first to file provisions, only became
effective on March 16, 2013. Accordingly, it is not clear what, if any, impact the Leahy-Smith Act will have on the operation of
the Company’s business. However, the Leahy-Smith Act and its implementation could increase the uncertainties and costs surrounding
the prosecution of the Company or its licensors’ or collaborators’ patent applications and the enforcement or defense of MindMed
or its licensors’ or collaborators’ issued patents, all of which could have a material adverse effect on MindMed’s business
and financial condition.

 

Litigation regarding patents, patent applications,
and other proprietary rights may be expensive, time consuming and cause delays in the development and manufacturing of the Company’s
key products

 

The Company’s success will depend in part
on its ability to operate without infringing the proprietary rights of third parties. The pharmaceutical industry is characterized by
extensive patent litigation. Other parties may have, or obtain in the future, patents and allege that the use of the Company’s technologies
infringes these patent claims or that the Company is employing these parties’ proprietary technology without authorization. The Company cannot
assure that third parties will not assert intellectual property claims against the Company. In addition, third parties may challenge or
infringe upon MindMed’s existing or future patents. Proceedings involving the Company’s patents or patent applications or
those of others could result in adverse decisions regarding:

 

		(1)	the patentability of MindMed’s inventions relating to its key products; and

 

		(2)	the enforceability, validity, or scope of protection offered by MindMed’s patents relating to its
key products.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

If the Company is unable to avoid infringing
the patent rights of others, the Company may be required to seek a license, defend an infringement action, or challenge the validity
of the patents in court. Regardless of the outcome, patent litigation is costly and time-consuming. In some cases, the Company may not
have sufficient resources to bring these actions to a successful conclusion. In addition, if MindMed does not obtain a license, develop
or obtain non-infringing technology, fail to defend an infringement action successfully or have infringed patents declared invalid, the
Company may:

 

		(1)	incur substantial monetary damages;

 

		(2)	encounter significant delays in bringing its key products to market; and

 

		(3)	be precluded from participating in the manufacture, use or sale of its key products or methods of treatment
requiring licenses.

 

Even if the Company is successful in these proceedings,
the Company may incur substantial costs and divert management time and attention in pursuing these proceedings, which could have a material
adverse effect on the Company.

 

The Company’s reliance on third parties
requires MindMed to share its trade secrets, which increases the possibility that a competitor will discover them

 

Because the Company relies on third parties to
develop its products, the Company must share trade secrets with them. The Company seeks to protect its proprietary technology in part by entering
into confidentiality agreements and, if applicable, material transfer agreements, collaborative research agreements, consulting agreements
or other similar agreements with its collaborators, advisors, employees and consultants prior to beginning research or disclosing proprietary
information. These agreements typically restrict the ability of its collaborators, advisors, employees and consultants to publish data
potentially relating to its trade secrets. The Company’s academic and clinical collaborators typically have rights to publish data,
provided that the Company is notified in advance and the Company may delay publication for a specified time in order to secure any intellectual
property rights arising from the collaboration. In other cases, publication rights are controlled exclusively by the Company, although
in some cases the Company may share these rights with other parties. MindMed may also conduct joint research and development programs
which may require the Company to share trade secrets under the terms of research and development collaborations or similar agreements.
Despite MindMed’s efforts to protect its trade secrets, MindMed’s competitors may discover its trade secrets, either through
breach of these agreements, independent development or publication of information including its trade secrets in cases where MindMed does
not have proprietary or otherwise protected rights at the time of publication. A competitor’s discovery of MindMed’s trade
secrets may impair its competitive position and could have a material adverse effect on its business and financial condition.

 

Risks Related to the Company’s Securities

 

Limited operating history as a public company

 

The Subordinate Voting Shares commenced trading
in Canada on the NEO in March 2020 and therefore the Company has a limited operating history as a public company. To operate effectively,
the Company will be required to continue to implement changes in certain aspects of the Company’s business, improve information
systems and develop, manage and train management-level and other employees to comply with ongoing public company requirements. Failure
to take such actions, or delay in implementation thereof, could adversely affect the business, financial condition, liquidity and results
of operations of the Company and, more specifically, could result in regulatory penalties, market criticism or the imposition of cease
trade orders in respect of the Subordinate Voting Shares.

 

The market prices for securities of biopharmaceutical
companies have historically been volatile.

 

A number of factors could influence the volatility
in the trading price of the Company’s Subordinate Voting Shares, including changes in the economy or in the financial markets, industry
related developments, the results of product development and commercialization, changes in government regulations, and developments concerning
proprietary rights, litigation and cash flow. The Company’s quarterly losses may vary because of the timing of costs for manufacturing,
preclinical studies and clinical trials. Also, the reporting of adverse safety events involving the Company’s products and public
rumors about such events could cause the Company’s share price to decline or experience periods of volatility. Each of these factors
could lead to increased volatility in the market price of the Subordinate Voting Shares. In addition, changes in the market prices of
the securities of the Company’s competitors may also lead to fluctuations in the trading price of the Subordinate Voting Shares.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion
and Analysis

 

Financial
markets have historically experienced periodic, significant price and volume fluctuations that: (i) have especially affected the
market prices of equity securities of companies and (ii) have often been unrelated to the operating performance, underlying asset
values or prospects of such companies. Accordingly, the market price of the Subordinate Voting Shares from time to time may decline even
if the Company’s operating results, underlying asset values and prospects have not changed. Additionally, these factors,
as well as other related factors, may cause decreases in asset values that may result in impairment losses to us. There can be no assurance
that further fluctuations in price and volume of Subordinate Voting Shares traded will not occur. If increased levels of volatility and
market turmoil continue, the Company’s operations could be adversely impacted, and the trading price of the Subordinate Voting Shares
may be materially adversely affected.

 

The Company will be subject to Canadian and
United States tax on its worldwide income

 

The Company will be deemed to be a resident of
Canada for Canadian federal income tax purposes by virtue of being organized under the laws of a province of Canada. Accordingly, the
Company will be subject to Canadian taxation on its worldwide income, in accordance with the rules in the Tax Act generally applicable
to corporations resident in Canada.

 

Notwithstanding that the Company will be deemed
to be a resident of Canada for Canadian federal income tax purposes, the Company is treated as a United States corporation for United
States federal income tax purposes, pursuant to Section 7874(b) of the Code, and will be subject to United States federal income
tax on its worldwide income. As a result, the Company will be subject to taxation both in Canada and the United States, which could have
a material adverse effect on the business, financial condition or results of operations of the Company.

 

The Company has never paid dividends and does
not expect to do so in the foreseeable future

 

The Company has not declared or paid any cash
dividends on its Subordinate Voting Shares to date and it is not anticipated that the Company will pay any dividends in the foreseeable
future. The payment of dividends in the future will be dependent on its earnings and financial condition in addition to such other factors
as MindMed’s Board considers appropriate. Unless and until the Company pays dividends, shareholders may not receive a return on
their shares. There is no present intention by MindMed’s Board to pay dividends on its shares.

 

Dispositions of Subordinate Voting Shares will
be subject to Canadian and United States tax

 

Dispositions of Subordinate Voting Shares will
be subject to Canadian tax. In addition, dispositions of Subordinate Voting Shares by U. S. Holders (as defined below) will be subject
to U.S. tax, and certain dispositions of Subordinate Voting Shares by non-U.S. Holders (including if the Company is treated as a USRPHC)
will be subject to U.S. tax. Dividends on the Subordinate Voting Shares may be subject to Canadian or United States withholding tax. It
is currently not anticipated that the Company will pay any dividends on the Subordinate Voting Shares in the foreseeable future.

 

To the extent dividends are paid on the Subordinate
Voting Shares, dividends received by shareholders who are residents of Canada for purposes of the Tax Act (and non-U.S. Holders for purposes
of the Code) will be subject to U.S. withholding tax. Any such dividends may not qualify for a reduced rate of withholding tax under the
Canada- United States tax treaty. In addition, a Canadian foreign tax credit or a deduction in respect of such U.S. withholding taxes
paid may not be available.

 

Dividends received by U.S. Holders will not be
subject to U.S. withholding tax but will be subject to Canadian withholding tax. Dividends paid by the Company will be characterized as
U.S. source income for purposes of the foreign tax credit rules under the Code. Accordingly, U.S. Holders may not be able to claim
a credit for any Canadian tax withheld unless, depending on the circumstances, they have other foreign source income that is subject to
a low or zero rate of foreign tax.

 

Dividends received by shareholders that are neither
Canadian nor U.S. shareholders will be subject to U.S. withholding tax and will also be subject to Canadian withholding tax. These dividends
may not qualify for a reduced rate of U.S. withholding tax under any income tax treaty otherwise applicable to a shareholder of the Company,
subject to examination of the relevant treaty. These dividends may, however, qualify for a reduced rate of Canadian withholding tax under
any income tax treaty otherwise applicable to a shareholder of the Company, subject to examination of the relevant tax treaty.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

For purposes hereof, a “U.S. Holder”
is a beneficial holder of Subordinate Voting Shares who or that, for U.S. federal income tax purposes is:

 

		·	an individual who is a United States citizen or resident of the United States;

 

		·	a corporation or other entity treated as a corporation for United States federal income tax purposes created
in, or organized under the laws of, the United States, any state thereof or the District of Columbia;

 

		·	an estate the income of which is includible in gross income for United States federal income tax purposes
regardless of its source; or

 

		·	a trust (A) the administration of which is subject to the primary supervision of a United States
court and which has one or more United States persons (within the meaning of the Code) who have the authority to control all substantial
decisions of the trust or (B) that has in effect a valid election under applicable U.S. Treasury Regulations to be treated as a United
States person.

 

U.S. Tax Classification – United States
Real Property Holding Company

 

The Company is treated as a U.S. domestic corporation
for U.S. federal income tax purposes under Section 7874 of the Code. As a U.S. domestic corporation for U.S. federal income tax purposes,
the taxation of the Company’s non- U.S. Holders upon a disposition of Subordinate Voting Shares generally depends on whether the
Company is classified as a USRPHC for U.S. federal income tax purposes. The Company believes that it presently is not a USRPHC and it
does not presently anticipate that it will become a USRPHC. However, because this determination is made from time to time and is dependent
upon a number of factors, some of which are beyond the Company’s control, including the value of its assets, there can be no assurance
that the Company will not become a USRPHC. If the Company ultimately is determined by the IRS to constitute a USRPHC, its non-U.S. Holders
may be subject to U.S. federal income tax on any gain associated with the disposition of the Subordinate Voting Shares.

 

Changes in tax laws may affect the Company
and holders of Subordinate Voting Shares

 

There can be no assurance that the Canadian and
U.S. federal income tax treatment of the Company or an investment in the Company will not be modified, prospectively or retroactively,
by legislative, judicial or administrative action, in a manner adverse to the Company or holders of Subordinate Voting Shares.

 

A return on the Company’s securities
is not guaranteed

 

There
is no guarantee that the Company’s securities will earn any positive return in the short term or long term. A holding of
the Company’s securities is speculative and involves a high degree of risk and should be undertaken only by holders whose financial
resources are sufficient to enable them to assume such risks and who have no need for immediate liquidity in their investment. A holding of the Company's securities is appropriate only for holders who have the capacity to absorb a loss of some or all of their investment.

 

Future sales or issuances of equity securities
and the conversion of outstanding securities to Subordinate Voting Shares could decrease the value of the Subordinate Voting Shares, dilute
investors’ voting power, and reduce the Company’s earnings per share

 

The Company may sell additional equity securities
in future offerings, including through the sale of securities convertible into equity securities, to finance operations, acquisitions
or projects, and issue additional Subordinate Voting Shares, which may result in dilution.

 

The Board has the authority to authorize certain
offers and sales of additional securities without the vote of, or prior notice to, shareholders. Based on the need for additional capital
to fund expected expenditures and growth, it is likely that the Company will issue additional securities to provide such capital. Such
additional issuances may involve the issuance of a significant number of Subordinate Voting Shares at prices less than the current market
price for the Subordinate Voting Shares.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

Sales of substantial amounts of the Company’s
securities, or the availability of such securities for sale, as well as the issuance of substantial amounts of the Subordinate Voting
Shares upon conversion of outstanding convertible equity securities, could adversely affect the prevailing market prices for the Company’s
securities and dilute investors’ earnings per share. A decline in the market prices of the Company’s securities could impair
the Company’s ability to raise additional capital through the sale of securities should the Company desire to do so.

 

Any failure to maintain an effective system
of internal controls may result in material misstatements of the Company’s financial statements or cause MindMed to fail to meet
its reporting obligations or fail to prevent fraud

 

The Company is subject to various Canadian reporting
and other regulatory requirements. The Company will incur expenses and, to a lesser extent, diversion of its management’s time in
its efforts to comply with applicable Canadian securities laws regarding internal controls over financial reporting. Effective internal
controls are necessary for MindMed to provide reliable financial reports and prevent fraud. If the Company fails to maintain an effective
system of internal controls, the Company might not be able to report its financial results accurately or prevent fraud; and in that case,
the Company’s shareholders could lose confidence in its financial reporting, which would harm its business and could negatively
impact the price of the Company’s Subordinate Voting Shares. While the Company believes that the Company has sufficient personnel
and review procedures to allow it to maintain an effective system of internal controls, MindMed cannot provide assurance that the Company
will not experience potential material weaknesses in its internal controls. Even if MindMed concludes that its internal control over financial
reporting provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with IFRS as issued by the International Accounting Standards Board, because of its inherent limitations,
internal control over financial reporting may not prevent or detect fraud or misstatements. Failure to implement required new or improved
controls, or difficulties encountered in their implementation, could harm the Company’s results of operations or cause it to fail
to meet its future reporting obligations. If the Company fails to timely achieve and maintain the adequacy of its internal control over
financial reporting, the Company may not be able to produce reliable financial reports or help prevent fraud. In addition, any testing
by the Company conducted in connection with applicable Canadian securities laws, or the subsequent testing by an independent registered
public accounting firm when required, may reveal deficiencies in its internal controls over financial reporting that are deemed to be
material weaknesses or that may require prospective or retrospective changes to its consolidated financial statements or identify other
areas for further attention or improvement. MindMed’s failure to achieve and maintain effective internal control over financial
reporting could prevent the Company from complying with its reporting obligations on a timely basis, which could result in the loss of
investor confidence in the reliability of its consolidated financial statements, harm the Company’s business and negatively impact
the trading price of its Subordinate Voting Shares.

 

There is no assurance an active or liquid market
for the Subordinate Voting Shares will be developed or sustained

 

No assurance can be given that an active or liquid
trading market for the Subordinate Voting Shares will be sustained. If an active or liquid market for the Subordinate Voting Shares fails
to be sustained, the prices at which such securities trade may be adversely affected. Whether or not the common shares will trade at lower
prices depends on many factors, including the liquidity of the Subordinate Voting Shares, prevailing interest rates, the markets for similar
securities, general economic conditions and the Company’s financial condition, historic financial performance and future prospects.

 

The Company cannot predict at what prices
the Subordinate Voting Shares will continue to trade, and there is no assurance that an active trading market will be sustained. The
Subordinate Voting Shares trade on the NEO Exchange but do not currently trade on any U.S. national securities exchange. In the
event Subordinate Voting Shares begin trading on any U.S. national securities exchange, the Company cannot predict at what prices the
Subordinate Voting Shares will trade and there is no assurance that an active trading market will develop or be sustained. There is
a significant liquidity risk associated with an investment in the Subordinate Voting Shares of the Company.

 

Trading in securities quoted on the OTCQB is often
thin and characterized by wide fluctuations in trading prices, due to many factors, some of which may have little to do with the Company’s
operations or business prospects. This volatility could depress the market price of Subordinate Voting Shares for reasons unrelated to
operating performance. Moreover, the OTCQB is not a U.S. national securities exchange, and trading of securities on the OTCQB is often
more sporadic than the trading of securities listed on a U.S. national securities exchange like the NASDAQ or the NYSE. These factors
may result in investors having difficulty reselling Subordinate Voting Shares on the OTCQB.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

Public markets and share prices

 

The market price of the Subordinate Voting Shares
on the NEO Exchange, OTCQB and Frankfurt Exchange could be subject to significant fluctuations in response to variations in the Company’s
operating results or other factors. In addition, fluctuations in the stock market may adversely affect the market price of additional
Subordinate Voting Shares that may become listed and posted for trading on the NEO Exchange, OTCQB and Frankfurt Exchange or any other
stock exchange regardless of the operating performance of the Company. Securities markets have also experienced significant price and
volume fluctuations from time to time. In some instances, these fluctuations have been unrelated or disproportionate to the operating
performance of issuers. Market fluctuations may adversely impact the market price of the Subordinate Voting Shares.

 

Additional issuances and dilution

 

The Company may issue and sell additional equity
or convertible debt securities to finance its operations, which may dilute existing shareholder’s holdings in the Company. The Company’s
articles permit the issuance of an unlimited number of Multiple Voting Shares and Subordinate Voting Shares, and existing shareholders
will have no pre-emptive rights in connection with such further issuances. Moreover, additional Subordinate Voting Shares will be issued
by the Company on the conversion of the Multiple Voting Shares in accordance with their terms. To the extent holders of the Company’s
options or other convertible securities convert or exercise their securities and sell Subordinate Voting Shares they receive, the trading
price of the Subordinate Voting Shares may decrease due to the additional amount of Subordinate Voting Shares available in the market.
Further, the Company may issue additional securities in connection with strategic acquisitions. The Company cannot predict the size or
type of future issuances of its securities or the effect, if any, that future issuances and sales of securities will have on the market
price of any of its securities issued and outstanding from time to time. Sales or issuances of substantial amounts of MindMed’s
securities, or the perception that such sales could occur, may adversely affect prevailing market prices for the Company’s securities
issued and outstanding from time to time. With any additional sale or issuance of MindMed’s securities, holders will suffer dilution
with respect to voting power and may experience dilution in the Company’s earnings per share.

 

Future sales of Subordinate Voting Shares by
existing shareholders may decrease the trading price of the Subordinate Voting Shares

 

Sales of a large number of Subordinate Voting
Shares in the public markets, or the potential for such sales, could occur at any time either by existing holders of Subordinate Voting
Shares or by holders of the Multiple Voting Shares, which are convertible into Subordinate Voting Shares on the satisfaction of certain
conditions. These sales, or the market perception that the holders of a large number of Subordinate Voting Shares or Multiple Voting Shares
intend to sell Subordinate Voting Shares, could reduce the market price of the Subordinate Voting Shares. If this occurs and continues,
it could impair the Company’s ability to raise additional capital through the sale of securities.

 

The Company is considered a Foreign Private Issuer
under current SEC guidance but may lose such status if the SEC guidance were to change

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

The Company is a “foreign private issuer”
as defined in Rule 405 under the U.S. Securities Act and Rule 3b-4 under the U.S. Exchange Act (a “Foreign Private Issuer”).
The term Foreign Private Issuer is defined as a corporation or other organization incorporated or organized under the laws of a country
other than the United States, except any issuer meeting the following conditions:

 

		1.	more than 50 percent of the outstanding voting securities of such issuer are, directly or indirectly,
held of record by residents of the United States; and

 

		2.	any one of the following:

 

		a.	the majority of the executive officers or directors are United States citizens or residents, or

 

		b.	more than 50 percent of the assets of the issuer are located in the United States, or

 

		c.	the business of the issuer is administered principally in the United States.

 

For purposes of determining whether more than
50% of the Company’s outstanding voting securities are held “of record” by U.S. residents, MindMed must “look
through” the record ownership of brokers, dealers, banks, or nominees holding securities for the accounts of their customers, and
also consider any beneficial ownership reports or other information available to MindMed. The Company must conduct this “look through”
in three jurisdictions: the United States, Canada (the Company’s home jurisdiction), and the primary trading market for its voting
securities, if different from MindMed’s home jurisdiction. Additionally, if the Company is not able to obtain information about
the record holders’ accounts after reasonable inquiry, MindMed may rely on the presumption that such accounts are held in the broker’s,
dealer’s, bank’s, or nominee’s principal place of business.

 

In December 2016, the SEC issued a Compliance
and Disclosure Interpretation to clarify that issuers with multiple classes of voting stock carrying different voting rights may choose
one of two methods in determining whether more than 50% of its outstanding voting securities are directly or indirectly owned of record
by residents in the United States; (a) the issuer may look to whether more than 50% of the voting power of those classes on a combined
basis, is directly or indirectly owned of record by residents of the United States; or (b) the issuer may make the determination
based on the number of voting securities. Issuers must apply a determination methodology on a consistent basis. Based on this interpretation,
each issued and outstanding Multiple Voting Share is counted as one voting security, and each issued and outstanding Subordinate Voting
Share is counted as one voting security for the purposes of determining the 50% U.S. resident threshold. Accordingly, MindMed is currently
treated as a Foreign Private Issuer. However, should the SEC’s guidance and interpretation change on this matter, the Company may
lose its Foreign Private Issuer status.

 

A loss of the Company’s Foreign Private
Issuer status may have adverse consequences on the Company’s cost of, and ability to raise, capital

 

The Company may lose its status as a Foreign Private
Issuer if, as of the last business day of its second fiscal quarter for any year, more than 50% of the Company’s outstanding voting
securities (as determined under Rule 405 of the U.S. Securities Act) are directly or indirectly held of record by residents of the
United States. Loss of Foreign Private Issuer status may have adverse consequences on the Company’s ability to raise capital in
private placements or Canadian prospectus offerings. In addition, loss of MindMed’s Foreign Private Issuer status would likely result
in increased reporting requirements and increased audit, legal and administration costs. The regulatory and compliance costs to the Company
under U.S. federal securities laws as a U.S. domestic issuer may be significantly more than the costs the Company incurs as a Canadian
Foreign Private Issuer eligible to use MJDS. If the Company is not a Foreign Private Issuer, it would not be eligible to use the MJDS
or other foreign issuer forms and would be required to file periodic and current reports and registration statements on U.S. domestic
issuer forms with the SEC, which are more detailed and extensive than the forms available to a Foreign Private Issuer and are generally
subject to more in-depth review by the SEC. Further, should the Company seek to list on a national securities exchange in the United States,
loss of Foreign Private Issuer status may increase the cost and time required for such a listing. These increased costs may have a material
adverse effect on the business, financial condition or results of operations of the Company.

 

The Company could lose its status as a Foreign
Private Issuer if all or a portion of the Multiple Voting Shares directly or indirectly held of record by U.S. residents are converted
into Subordinate Voting Shares. The conversion rights attached to the Multiple Voting Shares contain restrictions on conversion that are
intended to avoid such a result; however there can be no guarantee that such restrictions on conversion will be effective to prevent the
Company from potentially losing Foreign Private Issuer status if a sufficient number of Multiple Voting Shares are converted into Subordinate
Voting Shares and such Subordinate Voting Shares are acquired, either upon conversion or pursuant to a subsequent transaction, by U.S.
residents. In addition, the Company could potentially lose its Foreign Private Issuer status as a result of future issuances of Subordinate
Voting Shares from treasury to the extent such shares are acquired by U.S. residents.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

A significant number of securities of the
Company are owned by a limited number of existing shareholders

 

The Company’s management, directors and
employees own a substantial number of the outstanding Subordinate Voting Shares and Multiple Voting Shares (on a non-diluted and partially-diluted
basis). As such, the Company’s management, directors and employees, as a group, are in a position to exercise influence over matters
requiring shareholder approval, including the election of directors and the determination of corporate actions, including, but not limited
to, any arrangement or sale of all or substantially all of its assets. Even if such management, directors and employees do not retain
their position with the Company, they will continue to have the ability to exercise the same significant voting power. These shareholders
are also in a position to delay, defer or prevent a change in control of the Company, an arrangement involving the Company or a sale of
all or substantially all of its assets that could otherwise be beneficial to the Company’s shareholders. Conversely, this concentrated
control could allow such holders to consummate such a transaction that its other shareholders do not support. In addition, such holders
may make long-term strategic investment decisions and take risks that may not be successful and may seriously harm the Company’s
business.

 

The Company’s capital structure and voting
control may cause unpredictability

 

Although other Canadian companies have dual class
or multiple voting share structures, given the concentration of voting control that is held by the Company’s management, directors
and employees, this capital structure and concentration of control could result in a lower trading price for, or greater fluctuations
in, the trading price of the Subordinate Voting Shares, adverse publicity to the Company or other adverse consequences for the Company.

 

A decline in the price or trading volume of
the Subordinate Voting Shares could affect the Company’s ability to raise further capital and adversely impact the Company’s
ability to continue operations

 

A prolonged decline in the price or trading volume
of the Subordinate Voting Shares could result in a reduction in the liquidity of the Subordinate Voting Shares and a reduction in the
Company’s ability to raise capital. Because a significant portion of the Company’s operations have been and will be financed
through the sale of equity securities, a decline in the price or trading volume of the Subordinate Voting Shares could be especially detrimental
to the Company’s liquidity and operations. Such reductions may force the Company to reallocate funds from other planned uses and
may have a material adverse effect on the Company’s business plan and operations, including the ability to operationalize existing
licenses and complete planned capital expenditures. If the price or trading volume of the Subordinate Voting Shares declines, there can
be no assurance that the Company will be able to raise additional capital or generate funds from operations sufficient to meet the Company’s
obligations. If the Company is unable to raise sufficient capital in the future, it may not have the necessary resources to continue normal
operations.

 

If securities or industry analysts do not publish
or cease publishing research or reports or publish misleading, inaccurate or unfavorable research about us, the Company’s business
or market, the Company’s stock price and trading volume could decline

 

The trading market for Subordinate Voting Shares
may be influenced by the research and reports that securities or industry analysts publish about us, the Company’s business, market
or competitors. If no or few securities or industry analysts cover the Company, the trading price and volume of the Subordinate Voting
Shares would likely be negatively impacted. If one or more of the analysts who cover the Company downgrades the Subordinate Voting Shares
or publishes inaccurate or unfavorable research about the Company’s business, or provides more favorable relative recommendations
about the Company’s competitors, the price of the Subordinate Voting Shares would likely decline. If one or more of these analysts
ceases coverage of MindMed or fails to publish reports on MindMed regularly, demand for the Subordinate Voting Shares could decrease,
which could cause the Company’s stock price or trading volume to decline.

 

As a public company, there are costs associated
with maintaining a public listing

 

As a public company in Canada, the Company is
subject to the reporting requirements, rules and regulations under the applicable Canadian securities laws and rules of stock
exchange(s) on which the Company’s securities may be listed. There are increased costs associated with legal, accounting and
other expenses related to such regulatory compliance. Securities legislation and the rules and policies of the NEO require listed
companies to, among other things, adopt corporate governance and related practices, and to continuously prepare and disclose material
information, all of which add to a company’s legal and financial compliance costs. The Company may also elect to devote greater
resources than it otherwise would have on communication and other activities typically considered important by publicly traded companies.

 

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MIND MEDICINE (MINDMED) INC. (formerly Broadway Gold Mining Ltd.)

Management’s Discussion and Analysis

 

DISCLOSURE CONTROLS AND INTERNAL CONTROLS OVER
FINANCIAL REPORTING

 

We have implemented a system of internal controls
that we believe adequately protects the Company’s assets and is appropriate for the nature of the Company’s business and the
size of the Company’s operations. The Company’s internal control system was designed to provide reasonable assurance that
all transactions are accurately recorded, that transactions are recorded as necessary to permit preparation of financial statements in
accordance with IFRS, and that the Company’s assets are safeguarded. These internal controls include disclosure controls and procedures
designed to ensure that information required to be disclosed by us is accumulated and communicated as appropriate to allow timely decisions
regarding required disclosure. Internal control over financial reporting means a process designed by or under the supervision of the Chief
Executive Officer and the Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB. The internal controls are
not expected to prevent and detect all misstatements due to error or fraud. There were no changes in the Company’s internal control
over financial reporting that occurred during the period ended December 31, 2020 that have materially affected, or are reasonably
likely to materially affect, the Company’s internal control over financial reporting. As at December 31, 2020, we have assessed
the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedure. Based on their
evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that these controls and procedures are effective.

 

Limitations of Controls and Procedures

 

The Company’s management, including the
Chief Executive Officer and the Chief Financial Officer, believes that any disclosure controls and procedures and internal controls over
financial reporting, no matter how well designed and operated, can have inherent limitations. Therefore, even those systems determined
to be effective can provide only reasonable assurance that the objectives of the control system are met.

 

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