Larimar Therapeutics Announces Pricing of Underwritten Public Offering

Rhea-AI Summary

Larimar Therapeutics (NASDAQ: LRMR), a clinical-stage biotech company, has announced the pricing of its underwritten public offering of 18.75 million shares of common stock at $3.20 per share. The offering is expected to generate $60 million in gross proceeds before deducting expenses.

The company has granted underwriters a 30-day option to purchase up to an additional 2.81 million shares. The offering, expected to close around July 31, 2025, is being managed by Leerink Partners, Guggenheim Securities, Truist Securities, and William Blair. Proceeds will support the development of nomlabofusp, other pipeline candidates, and general corporate purposes including R&D and pre-commercialization expenses.

Positive

• Expected to raise $60 million in gross proceeds to fund development programs
• Participation of multiple prominent investment banks as joint bookrunners
• Proceeds will support development of nomlabofusp and pipeline expansion

Negative

• Potential dilution for existing shareholders with 18.75 million new shares
• Additional dilution possible if underwriters exercise option for 2.81 million more shares

Insights

Biotech Investment Analyst

Larimar's $60M public offering strengthens its rare disease pipeline funding but dilutes existing shareholders substantially.

Larimar Therapeutics has successfully priced its public offering at $3.20 per share, raising $60 million in gross proceeds through the issuance of 18.75 million shares. This capital raise is strategically significant for this clinical-stage biotech focused on complex rare diseases, as it substantially bolsters their balance sheet.

The pricing represents a typical discount to market value, which is standard practice for secondary offerings in the biotech sector to ensure sufficient investor interest. The involvement of four respected investment banks as joint bookrunners (Leerink Partners, Guggenheim Securities, Truist Securities, and William Blair) lends credibility to this transaction.

This financing provides Larimar with critical runway to advance nomlabofusp, their lead asset, along with supporting other pipeline candidates. For a clinical-stage biotech without consistent revenue streams, securing adequate funding is essential to progress through costly clinical trials and pre-commercialization activities without the constant threat of cash constraints.

However, the offering introduces significant dilution for existing shareholders, with 18.75 million new shares entering circulation (potentially rising to 21.56 million if the underwriters exercise their option). This dilution is the trade-off for the extended operational runway and reduced financial risk that comes with the $60 million cash infusion.

The company's focus on rare diseases creates both challenges and opportunities - development pathways can be accelerated and market exclusivity periods enhanced, but clinical trials remain expensive and commercial markets are inherently limited by small patient populations.

BALA CYNWYD, Pa., July 29, 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 pricing of its previously announced underwritten public offering of 18,750,000 shares of its common stock at a price to the public of $3.20 per share. The aggregate gross proceeds to Larimar from this offering are expected to be $60.0 million, before deducting underwriting discounts and commissions and other offering expenses. In addition, Larimar has granted the underwriters a 30-day option to purchase up to an additional 2,812,500 shares of its common stock at the public offering price, less underwriting discounts and commissions. All shares of common stock are being offered by Larimar. The offering is expected to close on or about July 31, 2025, subject to the satisfaction of customary closing conditions.

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

Larimar intends to use the net proceeds from the proposed 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 offering is being made 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 preliminary prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC on July 29, 2025 and is available for free on the SEC’s website at www.sec.gov. A final prospectus supplement with the final terms of the offering and accompanying prospectus will be filed with the SEC and will be 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 be obtained, when available, 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 completion, use of proceeds and anticipated total gross 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: risks and uncertainties related to market conditions and the satisfaction of customary closing conditions related to the public offering, and other risks and uncertainties related to the public offering, as well as 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 is Larimar Therapeutics (LRMR) raising in its public offering?

Larimar is raising $60 million in gross proceeds through an offering of 18.75 million shares priced at $3.20 per share, before deducting underwriting discounts and other expenses.

What will Larimar Therapeutics use the proceeds for?

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

When will Larimar's public offering close?

The offering is expected to close on or about July 31, 2025, subject to customary closing conditions.

Which investment banks are managing Larimar's public offering?

The offering is being jointly managed by Leerink Partners, Guggenheim Securities, Truist Securities, and William Blair as joint bookrunning managers.

How many additional shares can underwriters purchase in Larimar's offering?

Underwriters have a 30-day option to purchase up to an additional 2,812,500 shares at the public offering price, less underwriting discounts and commissions.