Bright Minds Biosciences Inc. (NASDAQ: DRUG) priced a new underwritten public offering of 1,945,000 common shares at $90.00 per share, generating gross proceeds of $175,050,000. The offering includes a 30‑day option for underwriters to purchase an additional 291,750 shares at the same price, allowing the company to raise up to $176,000,000 if the option is exercised.
The company will use the net proceeds to fund future clinical trials for its epilepsy and Prader‑Willi programs, launch Phase 1 studies of BMB‑105, and support additional research and development work, as well as general corporate and working‑capital needs. This capital infusion extends Bright Minds’ cash runway and provides the resources needed to advance its selective 5‑HT receptor agonist pipeline.
The financing follows the termination of the company’s at‑the‑market equity program, which had a capacity of up to $100 million, and comes just after a $100 million public offering that closed on January 6, 2026. The timing of the new offering coincides with the release of positive Phase 2 data for BMB‑101, the company’s lead epilepsy candidate, which drove a 16.5% jump in the stock on January 6 and bolstered investor confidence in the pipeline.
Market reaction to the offering was tempered by a slight pre‑market dip on January 8, but the overall context of a successful pricing at a premium to the current share price and the strong clinical data for BMB‑101 reinforced a positive outlook. Analysts noted the company’s ability to secure a large, well‑priced financing round as evidence of confidence in its valuation and future prospects.
With the new capital, Bright Minds is positioned to accelerate the development of its epilepsy, Prader‑Willi, and other CNS programs, potentially shortening the path to regulatory approval and expanding its addressable market. The extended runway also provides flexibility to navigate the competitive CNS therapeutics landscape and pursue additional strategic opportunities.
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