Morgan Stanley And TD Cowen Lead Financing Of Up To $285M For Psychedelics Company: Private Placement Backed By 'Select Group' Of Investors
Portfolio Pulse from Lara Goldstein
Psychedelics biotech company COMPASS Pathways (NASDAQ:CMPS) has secured a securities purchase agreement for an initial $125 million and potential additional of $160 million, backed by a group of healthcare specialist investors led by TCGX and Aisling Capital. The agreement includes the private placement of over 16 million American Depositary Shares (ADS) and warrants to purchase up to the same amount of ADSs. The financing is expected to close on August 18, extending the company's cash runway into late 2025.
August 16, 2023 | 2:47 pm
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COMPASS Pathways has secured significant financing which will extend its cash runway into late 2025. This could potentially boost investor confidence in the company's financial stability.
The secured financing will provide COMPASS Pathways with a significant cash injection, extending its cash runway into late 2025. This could potentially boost investor confidence in the company's financial stability and lead to a positive impact on the company's stock price in the short term.
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