Mentari Therapeutics Announces $200 Million Private Placement for Migraine Prevention Pipeline
Rhea-AI Summary
Mentari Therapeutics, a privately held migraine-focused biotech, announced a $200 million private placement of common stock and pre-funded warrants to leading healthcare investors including Fairmount, ADAR1 Capital Management, Venrock Healthcare Capital Partners, Janus Henderson Investors, Blackstone Multi-Asset Investing, RTW Investments, Deep Track Capital, Vivo Capital, Commodore Capital and BB Biotech.
According to Mentari, the financing extends its cash runway into 2029, funding Phase 2a readouts for its two PACAP‑targeted lead programs, including MT-002, and supporting the broader migraine prevention pipeline. The placement is expected to close immediately before Mentari’s proposed merger with InMed Pharmaceuticals (Nasdaq: INM) and concurrently with a previously announced $290 million private placement. After the merger and both financings, the combined company, which will operate under the Mentari Therapeutics name and trade on Nasdaq under a new ticker, is expected to have approximately 601,195,812 common shares outstanding on an as-converted / as-exercised basis.
Positive
- $200 million private placement from a syndicate of healthcare investors
- Financing extends cash runway into 2029 based on current plans
- Funding covers Phase 2a readouts for two PACAP-targeted lead programs
- Private placement aligned to close with InMed INM merger and prior $290 million raise
- Post-transactions share count estimated at 601,195,812 on as-converted / as-exercised basis
Negative
- None.
News Explained
If the announced $200 million placement closes, issuing its securities would dilute existing InMed holders; it has not yet closed.
The announced
A pre-funded warrant converts to shares when exercised, so it can add to the share count on an as-exercised basis.
The completion path is still open: the Form S-4 has not become effective, and InMed says it will mail definitive proxy materials only after effectiveness.
Market reaction after 200M private placement: INM +7.79% in the Jul 22 session
In the Jul 22 session, INM gained 7.79%, reflecting a notable positive market reaction. Argus tracked a peak move of +99.8% during that session. Argus tracked a trough of -22.9% from its starting point during tracking. Our momentum scanner triggered 73 alerts that day, indicating high trading interest and price volatility. Trading volume was exceptionally heavy at 1373.1x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Private placement Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 27 | Private placement | Negative | -2.3% | Closed financing involving shares, warrants, and investment options. |
| Jun 25 | Private placement | Negative | -2.1% | Announced institutional financing involving shares and short-term investment options. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Both tag-matched private-placement events had negative 24-hour reactions (-2.31% and -2.07%), averaging -2.19%.
Key Terms
pre-funded warrants financial
bispecific antibody medical
monoclonal antibody medical
form s-4 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Key transaction details for the private placement include:
- The additional
$200 million - Investors include Fairmount, ADAR1 Capital Management, Venrock Healthcare Capital Partners, Sirenia Capital Management LP, Janus Henderson Investors, Blackstone Multi-Asset Investing, RTW Investments, Deep Track Capital, Vivo Capital, Commodore Capital, BB Biotech, and other leading healthcare investors.
- The financing, based on current plans, extends Mentari's cash runway into 2029 and through Phase 2a readouts on each of the two PACAP-targeted lead programs, including MT-002. Additionally, it supports the clinical development of Mentari's broader migraine prevention pipeline.
- The Private Placement is expected to close immediately prior to the completion of Mentari's merger with InMed Pharmaceuticals, Inc. (Nasdaq: INM) (the "Merger") and concurrently with the previously announced
$290 million - Following the completion of the Merger, the Initial Private Placement and the Private Placement, the estimated total number of shares of common stock outstanding of the combined company on an as-converted / as-exercised basis is expected to be approximately 601,195,812.
Jefferies, TD Cowen, Stifel and Guggenheim Securities, are acting as the placement agents.
About Mentari Therapeutics
Mentari Therapeutics is a biotechnology company developing therapies for the prevention of migraine to deliver freedom from this debilitating and undertreated neurological condition that affects more than 1 billion people globally. Mentari's lead programs target PACAP, a newly validated target that is mechanistically independent from CGRP, one of the first migraine targets to yield clinical and commercial success. Mentari's pipeline includes MT-001, an anti-PACAP monoclonal antibody designed for convenient subcutaneous dosing, and MT-002, an anti-CGRP and anti-PACAP bispecific antibody designed to inhibit these complementary pathways with potential to deliver superior outcomes for people with incomplete response to CGRP-targeted therapies. The company's programs were discovered by Paragon Therapeutics. Mentari is based in Waltham, MA. For more information, visit mentaritx.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the proposed merger of InMed Pharmaceuticals Inc. ("InMed") and Mentari Therapeutics, Inc. ("Mentari") and related private financing; the expected timing, completion and anticipated benefits of the merger and private financing; the expected proceeds from investors in the private financing; expectations regarding the use of proceeds, the sufficiency of resources to support the advancement of Mentari's pipeline through certain milestones and the time period over which resources will be sufficient to fund Mentari's anticipated operations; the combined company operating under the name Mentari Therapeutics, Inc.; the anticipated timing of regulatory filings for, and the development, potential benefits and therapeutic potential of, MT-001 and MT-002; and the strategy, plans, objectives and leadership of Mentari and the combined company. Words such as "anticipate," "believe," "expect," "intend," "plan," "potential," "will" and similar expressions identify forward-looking statements. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, including, among others: the risk that the merger may not be completed on the anticipated timeline or at all; the failure to obtain the required InMed shareholder and Mentari stockholder approvals or to satisfy other closing conditions, including effectiveness of the registration statement on Form S-4; the risk that any concurrent financing is not completed on the expected terms or at all; risks relating to the redomestication, reverse stock split and Nasdaq continued-listing requirements; risks inherent in preclinical and clinical development, the regulatory review and approval process and commercialization of product candidates; and the other risks described in InMed's filings with the U.S. Securities and Exchange Commission (the "SEC") and applicable Canadian securities regulators, including the Form S-4 and the proxy statement/prospectus and management information circular relating to the merger. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on them as predictions of future events. Except as required by law, neither InMed nor Mentari undertakes any obligation to update any forward-looking statement.
No Offer or Solicitation
This press release is for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy, any securities, or the solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Without limiting the foregoing, this press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in connection with any private placement or other financing by Mentari or InMed. Any such securities have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act or an applicable exemption therefrom.
Important Additional Information About the Merger and Where to Find It
In connection with the proposed merger, InMed has filed with the SEC a registration statement on Form S-4 that includes a preliminary proxy statement/prospectus of InMed and a management information circular and will file other relevant documents with the SEC and applicable Canadian securities regulators. The Form S-4 has not yet become effective. After the Form S-4 is declared effective, InMed will mail a definitive proxy statement/prospectus and management information circular to its shareholders and to Mentari's stockholders. INVESTORS AND SECURITYHOLDERS OF INMED AND MENTARI ARE URGED TO READ THE FORM S-4, THE PROXY STATEMENT/PROSPECTUS AND MANAGEMENT INFORMATION CIRCULAR (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS) AND ALL OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC AND CANADIAN SECURITIES REGULATORS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT INMED, MENTARI, THE MERGER AND RELATED MATTERS. Investors and securityholders may obtain free copies of these documents (when available) through the SEC's website at www.sec.gov, on SEDAR+ at www.sedarplus.ca, or from InMed at inmedpharma.com/investors.
Participants in the Solicitation
InMed, Mentari and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from InMed's shareholders and Mentari's stockholders in connection with the proposed merger. Information regarding InMed's directors and executive officers and a description of their direct and indirect interests, by security holdings or otherwise, is set forth in InMed's most recent annual report [on Form 10-K / Form 40-F, as applicable] and its other filings with the SEC and on SEDAR+. Additional information regarding the participants and their interests is or will be contained in the proxy statement/prospectus and management information circular and other relevant materials filed or to be filed with the SEC and Canadian securities regulators. These documents may be obtained free of charge as described above.
Media Contact
Lia Dangelico
Deerfield Group
lia.dangelico@deerfieldgroup.com
540-303-0180
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SOURCE Mentari Therapeutics