Larimar Therapeutics has successfully priced an expanded underwritten public offering, issuing 20 million shares at $5.00 per share and generating $100 million in gross proceeds. The upsize of the offering reflects investor demand for the biopharmaceutical company's equity. J.P. Morgan and Guggenheim Securities are serving as joint bookrunning managers for the transaction, which is expected to close on February 27, 2026.
The company intends to allocate the capital toward advancing clinical development of nomlabofusp, its therapeutic candidate for Friedreich's ataxia, a rare inherited neurological disorder affecting the nervous system's ability to control muscle movement and speech. The remaining proceeds will support general corporate purposes, including operations and working capital needs.
This capital raise strengthens Larimar's financial position as it progresses nomlabofusp through development stages. The funding provides resources for the company to execute its clinical development strategy while maintaining operational flexibility for its broader pipeline initiatives.