Psychedelics
Compass Pathways Lands $125M Investment
If all warrants are exercised, an additional $160 million comes into play.
The post Compass Pathways Lands $125M Investment appeared first on Green Market…
Biotech firm Compass Pathways plc (Nasdaq: CMPS) is set to receive a $125 million investment, with potential for an additional $160 million, in a deal with health care investors TCGX and Aisling Capital, the company announced Wednesday.
The company will sell more than 16 million shares (specifically, American Depositary Shares or ADS) at roughly $7.78 each. Along with those shares, investors will receive warrants priced at $9.93 each, valid for three years. If all warrants are exercised, the added $160 million comes into play.
Because there’s a limit to how many shares an investor can own – with the cap is set at 9.99% – a range of investment firms, including Vivo Capital, RA Capital, and Surveyor Capital, have pitched in. The financing is expected to close on Friday.
Compass CEO Kabir Nath views the investment as a nod to the potential of psychedelic medicine, especially psilocybin, in treating conditions like treatment-resistant depression, PTSD, and anorexia nervosa.
“We thank these investors for their confidence in our rigorous approach to building a strong base of evidence for the potential of COMP360 psilocybin treatment to help people,” Nath said in a statement.
The funds are anticipated to extend the company’s operations runway until late 2025, pushing along core research and commercial efforts.
Morgan Stanley and TD Cowen are facilitating the financial transaction, with both set to receive a combined fee of roughly 6% of the gross proceeds, according to filings.
The post Compass Pathways Lands $125M Investment appeared first on Green Market Report.
psilocybin
psychedelic
depression
ptsd
shares
nasdaq
sell
biotech
Psychedelic Search Trends in 2023
Take a look at this 2023 search volume chart. Do you think you can guess what’s happening? I was pretty shocked when I noticed this spike for December…
Here Are the Champions! Our Top Performing Stories in 2023
It has been quite a year – not just for the psychedelic industry, but also for humanity as a whole. Volatile might not be the most elegant word for it,…
Psilocybin shows promise for treating eating disorders, but more controlled research is needed
Recent psychedelic research shows promising results for mental illnesses and eating disorders, with surveys and reports indicating psilocybin-assisted…
