Ovid Therapeutics prices private placement up to $175M in gross proceeds

Ovid Therapeutics (OVID) entered into a securities purchase agreement for a private investment in public equity financing that is expected to result in gross proceeds of up to $175M to the Company, including initial gross proceeds of approximately $81M, in each case before placement agent fees and offering expenses. The PIPE financing is expected to close on or about October 6, subject to satisfaction of customary closing conditions. The PIPE financing included participation from new investors Janus Henderson Investors, RA Capital Management, Eventide Asset Management, Coastlands Capital, Blue Owl Healthcare Opportunities, Balyasny Asset Management, Saturn V Capital and Ally Bridge Group, alongside existing investors including ADAR1 Capital Management and Affinity Healthcare Fund, as well as new and existing large investment management firms. Pursuant to the terms of the securities purchase agreement, the Company is selling an aggregate of 57,722 shares of its Series B non-voting convertible preferred stock, Series A warrants to purchase 38,481,325 shares of its common stock and/or pre-funded warrants and Series B warrants to purchase 28,861,000 shares of its common stock and/or Pre-Funded Warrants. Each share of Series B Preferred Stock is being sold together with a Series A Warrant to purchase 666.66 shares of common stock and/or Pre-Funded Warrants and a Series B Warrant to purchase 500 shares of common stock and/or Pre-Funded Warrants, referred to collectively as a “Security.” The Security will be sold at a purchase price of $1,400.00 per Security. The Series A Warrants and Series B Warrants will each have an exercise price of $1.40 per share. The Company intends to use the net proceeds from the initial closing of the PIPE financing, together with the Company’s existing cash, cash equivalents and marketable securities, to provide financing for research and development, general corporate expenses, and working capital needs. The Company expects that its cash will fund its operating plan into 2028. TD Cowen, Leerink Partners and Oppenheimer & Co. are acting as joint placement agents for the PIPE financing.