Larimar Therapeutics Announces Proposed Underwritten Public Offering

Rhea-AI Summary

Larimar Therapeutics (NASDAQ: LRMR), a clinical-stage biotech company, has announced a proposed underwritten public offering of its common stock and pre-funded warrants. The offering includes a 30-day option for underwriters to purchase up to an additional 15% of securities at the public offering price.

The company plans to use the proceeds to support the development of nomlabofusp and other pipeline candidates, along with working capital and general corporate purposes. Leerink Partners and Guggenheim Securities are serving as joint bookrunning managers for the offering, which will be made under an effective S-3 shelf registration.

Positive

• Proceeds will support development of nomlabofusp and pipeline candidates
• Additional funding for working capital and pre-commercialization expenses
• Offering includes 30-day option for underwriters to purchase additional 15% of securities

Negative

• Potential dilution for existing shareholders
• Uncertain timing and terms of the offering completion
• Stock price may be negatively impacted by increased share supply

Insights

Biotech Investment Analyst

Larimar's public offering will fund nomlabofusp development but will dilute existing shareholders while strengthening cash position.

Larimar Therapeutics has announced a proposed underwritten public offering of common stock and pre-funded warrants, signaling a strategic move to raise capital. This financing will provide essential funding for the company's lead candidate nomlabofusp and other pipeline assets focused on complex rare diseases.

The structure of this offering includes several noteworthy elements: the company is offering both common shares and pre-funded warrants (for certain investors), and underwriters will have a 30-day option to purchase up to an additional 15% of securities at the public offering price. Joint bookrunners Leerink Partners and Guggenheim Securities add credibility to the transaction.

For investors, this offering represents a double-edged sword. While it will strengthen Larimar's cash position and extend their operational runway to advance nomlabofusp through clinical development, it will also dilute existing shareholders. The absence of pricing terms in this announcement suggests the company is still gauging market interest before finalizing details.

The stated use of proceeds focuses on three key areas: development of nomlabofusp, advancing other pipeline candidates, and supporting working capital needs including pre-commercialization expenses. This allocation suggests Larimar is not only funding current clinical programs but also preparing for potential commercial activities, indicating confidence in their development timeline.

Notably, this offering comes under a shelf registration statement (Form S-3) that became effective in May 2024, demonstrating the company's proactive approach to maintaining flexible access to capital markets.

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 that it has commenced an underwritten public offering of shares of its common stock and, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase shares of its common stock. In addition, Larimar expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the securities to be sold in the proposed offering at the public offering price, less underwriting discounts and commissions. All shares of common stock and pre-funded warrants in the proposed offering are to be sold by Larimar. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the proposed offering.

Leerink Partners and Guggenheim Securities are acting as joint bookrunning managers for the proposed 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 proposed 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 proposed offering will be filed with the SEC and will be available for free on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the proposed 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; or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8^th Floor, New York, New York 10017, by telephone at (212) 518-9544 or by email at GSEquityProspectusDelivery@guggenheimpartners.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

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, market conditions, statements relating to the completion, timing, size, use of proceeds of the proposed public offering on the anticipated terms or at all and the grant of the option to the underwriters to purchase additional shares 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 proposed public offering, completion of the proposed public offering on the anticipated terms or at all, and other risks and uncertainties related to the proposed public offering, as well as the risks and uncertainties set forth in the “Risk Factors” section and elsewhere in the preliminary prospectus supplement related to the proposed 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

What is the purpose of Larimar Therapeutics (LRMR) public offering in July 2025?

The offering aims to raise funds for developing nomlabofusp and other pipeline candidates, working capital, and general corporate purposes including research and pre-commercialization expenses.

Who are the underwriters for LRMR's July 2025 public offering?

Leerink Partners and Guggenheim Securities are acting as joint bookrunning managers for the proposed offering.

What options do investors have in Larimar's July 2025 public offering?

Investors can choose between common stock shares or pre-funded warrants to purchase common stock shares.

What is the additional purchase option for underwriters in LRMR's offering?

Underwriters have a 30-day option to purchase up to an additional 15% of securities at the public offering price, less underwriting discounts and commissions.

How can investors access the prospectus for Larimar's 2025 offering?

The prospectus will be available on the SEC's website (www.sec.gov) and can be obtained from Leerink Partners and Guggenheim Securities upon request.