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NEW YORK/AMSTERDAM - Clinical-stage biopharmaceutical company atai Life Sciences (NASDAQ:ATAI), which has seen its stock surge over 64% in the past six months according to InvestingPro data, announced Tuesday it has entered into agreements for a $50 million private placement of ordinary shares and pre-funded warrants.
The financing round was co-led by Ferring Ventures S.A. and Apeiron Investment Group, with participation from healthcare-focused institutional investors including Ally Bridge Group and ADAR1.
Under the terms of the agreement, atai will issue 18,264,840 ordinary shares and pre-funded warrants to purchase an additional 4,566,210 common shares.
The company, which focuses on developing mental health treatments, plans to use the proceeds for general corporate purposes, including working capital and advancing clinical development of its product candidates. This capital injection comes at a crucial time, as InvestingPro analysis indicates the company maintains a healthy current ratio of 4.07, with liquid assets well exceeding short-term obligations, though it has been burning through cash reserves.
The private placement is subject to closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act related to a filing expected from Christian Angermayer, atai’s Founder and Chairman, in connection with Apeiron’s investment. The transaction is expected to close in the third quarter of 2025.
"With this financing, atai is well-positioned to accelerate its efforts and achieve its goal of delivering new therapeutic options for individuals facing serious mental health challenges," said Angermayer in the press release.
Jean-Frederic Paulsen, Chairman of Ferring Ventures S.A., noted the potential of psychedelics as treatments for mental health conditions and expressed support for atai’s work in this field.
The securities being issued have not been registered under the Securities Act of 1933 and are being sold in a private placement. TD Cowen, Leerink Partners, Guggenheim Securities, and Berenberg are acting as joint-lead placement agents.
atai’s pipeline includes VLS-01 (buccal film DMT) for treatment-resistant depression and EMP-01 (oral R-MDMA) for social anxiety disorder, both in Phase 2 clinical development, according to the company’s statement. While the company is not yet profitable, InvestingPro data reveals strong anticipated sales growth for the current year, with analysts tracking multiple promising developments in the company’s clinical programs. Subscribers can access 9 additional exclusive ProTips and detailed financial metrics for deeper analysis of atai’s potential.
In other recent news, atai Life Sciences and Beckley Psytech announced positive results from a Phase 2b trial of BPL-003, an intranasal treatment for treatment-resistant depression. The trial showed significant reductions in depression scores with both 8 mg and 12 mg doses, and the companies plan to advance the 8 mg dose to Phase 3 development. In a strategic move, atai Life Sciences is set to merge with Beckley Psytech to form atai Beckley, aiming to become a leader in psychedelic mental health therapies. This merger, expected to close in the second half of 2025, has been approved by both companies’ boards and awaits shareholder approval.
Lucid Capital Markets initiated coverage on atai Life Sciences with a Buy rating, setting a price target of $12.00, citing the company’s extensive drug portfolio. H.C. Wainwright also maintained a Buy rating with a $10 price target following the merger announcement. At the annual general meeting, atai Life Sciences’ shareholders approved several proposals, including the adoption of annual accounts and the appointment of new auditors and directors. These developments reflect atai’s commitment to advancing its mission and maximizing shareholder value.
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