Benzinga | May 21, 2021 03:47PM EDT

Larimar Shares Trade Higher On $95M Capital Raise, CTI-1601's Priority Medicines Tag In Europe

* Larimar Therapeutics Inc (NASDAQ: LRMR) has executed a securities purchase agreement to raise gross proceeds of approximately $95 million in a private placement.

* The proceeds will be used to support the clinical development of CTI-1601, additional R&D, and working capital, and general corporate purposes.

* Larimar will issue approximately 7 million shares at $13.43.

* Each pre-funded warrant will have an exercise price of $0.01 per share and will be exercisable immediately.

* The private placement is expected to close by May 25.

* Today, CTI-1601 also received European Medicines Agency has granted Priority Medicines designation for Friedreich's ataxia.

* Earlier this month, Phase 1 data showed that CTI-1601 led to dose-dependent increases in FXN levels from baseline versus the placebo controls.

* The company also reported mortality in a 90-day and 180 day-non-human primate study at the highest dose levels.

* Price Action: LRMR shares are up 11.7% at $15 during the market session on the last check Friday.