BALA CYNWYD, PA — The biotech firm Larimar Therapeutics, Inc. (Nasdaq: LRMR) recently announced that it has successfully closed an underwritten public offering. The company sold 19,736,842 shares of its common stock, including an additional 2,574,370 shares taken up by underwriters exercising their full purchase option. The shares were sold at the public offering price of $8.74 each, matching the closing price of Larimar’s common stock on February 13, 2024.
The gross proceeds from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, totaled approximately $172.5 million. This significant capital infusion marks a pivotal moment for Larimar as it continues to develop treatments for rare diseases.
Leerink Partners, Citigroup, and Guggenheim Securities served as joint bookrunning managers for the offering, while LifeSci Capital acted as lead manager. The sale of shares was conducted pursuant to a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission (SEC) on November 21, 2022.
Larimar has earmarked the net proceeds from the offering to support the development of nomlabofusp (CTI-1601), among other pipeline candidates. Funds will also be directed towards working capital and general corporate purposes, including research and development expenses. This indicates the company’s intent to accelerate its research and development initiatives in the pursuit of breakthroughs in the treatment of rare diseases.
The company’s announcement clarifies that the offer to sell or the solicitation of an offer to buy these securities is not valid in any state or jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.
The substantial funds raised will undoubtedly provide a significant boost to the company’s ongoing development efforts, potentially leading to groundbreaking advancements in the biotech industry. For shareholders, this could mean increased returns and a stronger position in the market for the long term.
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