Larimar Therapeutics Announces Closing of Underwritten Public Offering of Common Stock and Exercise in Full of the Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Larimar Therapeutics (Nasdaq: LRMR), a clinical-stage biotech company, has successfully closed its previously announced underwritten public offering. The company sold 21,562,500 shares of common stock at $3.20 per share, including the full exercise of the underwriters' option to purchase 2,812,500 additional shares.

The offering generated gross proceeds of $69.0 million, which will be used to support the development of nomlabofusp and other pipeline candidates, working capital, and general corporate purposes including R&D and pre-commercialization expenses. The offering was managed by joint bookrunners Leerink Partners, Guggenheim Securities, Truist Securities, and William Blair.

Positive

• Raised significant capital of $69.0 million in gross proceeds
• Full exercise of underwriters' option indicates strong demand
• Funds secured for development of nomlabofusp and pipeline candidates

Negative

• Potential dilution for existing shareholders due to 21.56M new shares
• Share offering price of $3.20 may represent a discount to market price

Insights

Biotech Investment Analyst

Larimar secures $69M through stock offering, strengthening its financial position to advance rare disease pipeline development.

Larimar Therapeutics has successfully completed a $69 million public offering through the sale of 21.56 million shares at $3.20 per share, including the full exercise of the underwriters' option for additional shares. This capital raise significantly bolsters the company's financial position as it advances its rare disease pipeline.

The successful completion with full exercise of the overallotment option indicates strong investor interest in Larimar's clinical programs. The $69 million infusion provides crucial runway extension for the company to advance nomlabofusp, its lead candidate, and other pipeline assets through key clinical milestones without immediate financing concerns.

The offering, managed by prominent healthcare investment banks including Leerink Partners and Guggenheim Securities, was executed through an existing shelf registration, demonstrating efficient capital market access. With these proceeds specifically earmarked for development of nomlabofusp, pipeline advancement, and pre-commercialization activities, Larimar has secured the financial resources needed to reach significant value-creating clinical milestones in its rare disease programs.

This financing strengthens Larimar's negotiating position for potential future partnerships while reducing near-term dilution pressure that could have emerged with a depleted cash position. For a clinical-stage biotech focused on complex rare diseases, this capital infusion represents a critical de-risking event that provides operational flexibility and extended development runway.

BALA CYNWYD, Pa., July 31, 2025 (GLOBE NEWSWIRE) -- Larimar Therapeutics, Inc. (“Larimar”) (Nasdaq: LRMR), a clinical-stage biotechnology company focused on developing treatments for complex rare diseases, today announced the closing of its previously announced underwritten public offering of 21,562,500 shares of its common stock, which includes the exercise in full of the underwriters’ option to purchase 2,812,500 additional shares, at the public offering price of $3.20 per share. The aggregate gross proceeds to Larimar from this offering, before deducting underwriting discounts and commissions and offering expenses, were $69.0 million.

Leerink Partners, Guggenheim Securities, Truist Securities and William Blair acted as joint bookrunning managers for the offering.

Larimar intends to use the net proceeds from the offering to support the development of nomlabofusp and other pipeline candidates, and for working capital and general corporate purposes, including research and development expenses and pre-commercialization expenses.

The shares were offered pursuant to a shelf registration statement on Form S-3 (File No. 333-279275) that was declared effective by the Securities and Exchange Commission (“SEC”) on May 24, 2024. A final prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC on July 30, 2025 and is available for free on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may also be obtained from Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, Massachusetts 02109, by telephone at (800) 808-7525, ext. 6105 or by email at syndicate@leerink.com; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, New York 10017 by telephone at (212) 518-9544 or by email at GSEquityProspectusDelivery@guggenheimpartners.com; Truist Securities, Inc., Attention: Equity Capital Markets, 740 Battery Ave SE, Atlanta, Georgia 30339, by telephone at (800) 685-4786 or by email at truistsecurities.prospectus@truist.com; or William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, Illinois 60606, by telephone at (800) 621-0687 or by email at prospectus@williamblair.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.

About Larimar Therapeutics, Inc.

Larimar Therapeutics, Inc. (Nasdaq: LRMR), is a clinical-stage biotechnology company focused on developing treatments for complex rare diseases. Larimar’s lead compound, nomlabofusp, is being developed as a potential treatment for Friedreich’s ataxia. Larimar also plans to use its intracellular delivery platform to design other fusion proteins to target additional rare diseases characterized by deficiencies in intracellular bioactive compounds.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend,” or similar expressions, or statements regarding intent, belief, or current expectations are forward-looking statements and reflect the current beliefs of Larimar’s management. Such forward-looking statements include, without limitation, statements relating to the use of proceeds from the public offering of common stock. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors that could cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements including, among others, the risks and uncertainties set forth in the “Risk Factors” section and elsewhere in the prospectus supplement related to the public offering filed with the Securities and Exchange Commission and in our other filings with the Securities and Exchange Commission and available at www.sec.gov, including but not limited to Larimar’s periodic reports, including Larimar’s most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. Any forward-looking statements that we make in this announcement speak only as of the date of this press release, and Larimar assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise after the date of this press release, except as required under applicable law.

Investor Contact:
Joyce Allaire
LifeSci Advisors
jallaire@lifesciadvisors.com
(212) 915-2569

Company Contact:
Michael Celano
Chief Financial Officer
mcelano@larimartx.com
(484) 414-2715

FAQ

How much money did Larimar Therapeutics (LRMR) raise in its July 2025 public offering?

Larimar Therapeutics raised $69.0 million in gross proceeds through the offering of 21,562,500 shares at $3.20 per share.

What is the purpose of Larimar Therapeutics' 2025 stock offering?

The proceeds will be used to support the development of nomlabofusp and other pipeline candidates, working capital, and general corporate purposes including R&D and pre-commercialization expenses.

How many shares did Larimar Therapeutics (LRMR) sell in its July 2025 offering?

Larimar sold 21,562,500 shares, which includes 2,812,500 additional shares from the full exercise of the underwriters' option.

Who were the underwriters for Larimar Therapeutics' 2025 public offering?

Leerink Partners, Guggenheim Securities, Truist Securities, and William Blair acted as joint bookrunning managers for the offering.

What was the price per share for Larimar Therapeutics' July 2025 stock offering?

The shares were offered at a public offering price of $3.20 per share.