Compass Pathways Sets Pricing for American Depositary Shares Offering

Compass Pathways Announces ADS Offering Details

Compass Pathways plc (Nasdaq: CMPS), a biotech innovator committed to enhancing patient access to evidence-based mental health treatments, recently revealed its plan for an underwritten offering. This offering includes 24,014,728 American Depositary Shares (ADSs), along with pre-funded warrants for institutional investors to purchase an additional 11,044,720 ADSs. Each ADS and warrant are associated with an ADS Warrant to buy one ADS at an exercise price of $5.796. This represents a notable 40% premium over the last sale price, making it a strategic financing move for the company.

Financial Highlights of the Offering

The offering price has been set at $4.275 per ADS together with the ADS Warrant, while the pre-funded warrants and accompanying ADS Warrants are priced at $4.2649. Compass Pathways is selling all securities in the offering, which is projected to yield gross proceeds nearing $150 million before deductions for underwriting discounts and commissions. If the ADS Warrants are completely exercised, total proceeds could soar to approximately $353 million.

Use of Proceeds for Advancing Mental Health Trials

The funds generated from this offering will be utilized primarily to support Compass Pathways' ongoing COMP005 and COMP006 clinical trials focusing on treatment-resistant depression. Trial data is anticipated in the second quarter of 2025 and the latter half of 2026. Further, the proceeds will bolster the company’s efforts to accelerate its late-stage program targeting PTSD, alongside providing for general working capital and corporate needs.

Investment Banks Leading the Offering

The offering is spearheaded by renowned financial institutions such as TD Cowen, Cantor, Stifel, and RBC Capital Markets, demonstrating a strong backing from experienced market players in the biotech sector.

Regulatory Aspects and Availability of Documentation

Compass Pathways is conducting this offering under a Registration Statement on Form S-3 previously submitted to the SEC. While comprehensive details about the offering will be available through legal documentation filed with the SEC, prospective investors will be able to access these details free of charge on the SEC's official website.

About Compass Pathways

Compass Pathways plc (Nasdaq: CMPS) is dedicated to revolutionizing mental health treatments through innovative solutions. The company is focused on enhancing the well-being of individuals grappling with mental health issues, particularly those who have not seen improvement from conventional therapies. A key aspect of their approach includes the use of COMP360, a proprietary formulation of synthetic psilocybin that is administered with psychological support, which has been awarded Breakthrough Therapy designation by the FDA.

Company Locations and Vision

With operational headquarters in London and additional offices in New York and San Francisco, Compass Pathways aims to create a world where mental health care is accessible and effective for everyone. Their vision encompasses a future rich in mental well-being, where advanced therapeutic options can transform lives.

Frequently Asked Questions

What are the details of the underwritten offering by Compass Pathways?

The offering involves 24,014,728 ADSs and 11,044,720 pre-funded warrants, aimed at raising substantial funds for clinical trials.

How will Compass Pathways utilize the proceeds from the offering?

The net proceeds will fund ongoing clinical trials for treatment-resistant depression and PTSD, and support general corporate purposes.

Who are the book running managers for this offering?

The offering is managed by TD Cowen, Cantor, Stifel, and RBC Capital Markets.

What is COMP360?

COMP360 is a proprietary formulation of synthetic psilocybin used in conjunction with psychological support to help treat mental health conditions.

Where is Compass Pathways headquartered?

Compass Pathways is headquartered in London, UK, with offices located in New York and San Francisco, USA.

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