Ovid Therapeutics (OVID) said Friday it has agreed to sell securities via a private investment in public equity financing which is expected to result in gross proceeds of up to $175 million, including initial gross proceeds of around $81 million.
The biotech firm said it is selling 57,722 shares of its series B non-voting convertible preferred stock, warrants to purchase about 38.5 million shares and/or pre-funded warrants, and warrants to purchase 28.9 million shares and/or pre-funded warrants
One share of series B preferred stock, sold together with a series a warrant to purchase 666.66 shares and/or pre-funded warrants, and the warrant to purchase 500 shares of common stock and/or pre-funded warrants have been priced $1,400, the company said.
The deal is expected to close Monday.
The company said it intends to use net proceeds from the initial closing financing, together with existing cash and equivalents, to help fund its operations into 2028.
Shares of the company were up 23% in recent premarket activity.
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