Larimar Therapeutics priced an upsized underwritten public offering of 20 million shares of common stock at $5.00 per share, generating aggregate gross proceeds of $100 million before underwriting discounts and commissions. The offering is being managed by J.P. Morgan and Guggenheim Securities, with the underwriters granted a 30‑day option to purchase an additional 3 million shares at the same price.
The company will use the net proceeds to advance the development of its lead candidate, nomlabofusp, for Friedreich’s ataxia, and to fund working capital and general corporate purposes, including research and development and commercialization expenses. Nomlabofusp has received Breakthrough Therapy Designation from the FDA, and Larimar plans to file a Biologics License Application in June 2026 with a U.S. launch targeted for the first half of 2027 if approved.
The capital raise comes at a critical juncture for Larimar. The company’s pipeline is centered on a single, high‑potential therapy, and the infusion of $100 million provides the financial runway needed to complete pivotal clinical studies, meet regulatory milestones, and prepare for commercialization. The funding also supports broader corporate initiatives that could accelerate future product development and market expansion.
Investors have expressed concern about the dilution effect of issuing 20 million new shares. While the offering strengthens Larimar’s balance sheet and positions the company for growth, the increased share count reduces existing shareholders’ ownership percentages, a factor that has tempered market enthusiasm.
The offering is expected to close on or about February 27 2026. Larimar’s use of a shelf registration statement on Form S‑3 indicates a proactive approach to capital raising, and the participation of prominent underwriters underscores confidence in the company’s prospects.
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