Larimar Therapeutics Announces Underwritten Public Offering of Common Stock and Pre-Funded Warrants

Larimar Therapeutics

BALA CYNWYD, PA — Larimar Therapeutics, Inc. (Nasdaq: LRMR), a Pennsylvania-based clinical-stage biotechnology company specializing in treatments for complex rare diseases, announced this week that it has launched an underwritten public offering of its common stock shares. Simultaneously, it is offering pre-funded warrants to purchase common stock shares to certain investors who prefer this option.

In a strategic move that underscores the company’s growth ambitions, Larimar also anticipates granting the underwriters an option to purchase up to an additional 15% of the securities scheduled for sale in the proposed offering. This will be at the public offering price, less any underwriting discounts and commissions. All shares of common stock and pre-funded warrants available in the proposed offering are to be sold by Larimar. However, the completion of this offering is contingent on market conditions and other factors. Consequently, there is no guarantee regarding when or whether the offering will be finalized, or the exact size or terms of the proposed offering.

Leading financial institutions Leerink Partners, Citigroup, and Guggenheim Securities have been appointed as joint book-running managers for the proposed offering. LifeSci Capital will act as the lead manager.

The net proceeds raised from the proposed offering will be used to fund the development of nomlabofusp (CTI-1601) and other pipeline candidates. In addition, funds will be directed towards working capital and general corporate purposes, including research and development expenses.

The proposed offering aligns with a shelf registration statement on Form S-3 (File No. 333- 268312) that was declared effective by the Securities and Exchange Commission (SEC) on November 21, 2022. A preliminary prospectus supplement and accompanying prospectus related to the proposed offering will be filed with the SEC. Investors will be able to access these documents for free on the SEC’s website.

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Larimar Therapeutics is known for its commitment to developing treatments for complex rare diseases. The company’s lead compound, nomlabofusp, is currently being developed as a potential treatment for Friedreich’s ataxia, a genetic disease that causes difficulty walking, a loss of sensation in the arms and legs, and impaired speech. Alongside this, Larimar aims to leverage its intracellular delivery platform to create other fusion proteins that target additional rare diseases characterized by deficiencies in intracellular bioactive compounds.

In summary, Larimar Therapeutics has announced a public offering of common stock shares and pre-funded warrants. This move aligns with the company’s strategy to raise capital to support the development of its lead compound and other pipeline candidates, reinforcing its commitment to innovating treatments for complex rare diseases. However, the finalization of the offering is subject to market conditions and other uncertainties.

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