Compass Pathways Underwrites $150 Million ADS Offering
Deal News | Jan 10, 2025 | Paul Hastings
Compass Pathways, a company focusing on innovative mental health treatments, recently announced an underwritten offering of 24,014,728 American Depositary Shares (ADSs) at $4.275 per ADS. Involved in the transaction are joint bookrunning managers TD Cowen, Cantor, Stifel, and RBC Capital Markets, with Paul Hastings providing advisory services. Pre-funded warrants were also offered at $4.2649 each, with each ADS and warrant accompanying the option to purchase an additional ADS at $5.796. Gross proceeds are anticipated to reach $150 million, with potential to increase to $353 million with full warrant exercise. The closing is expected by January 13, 2025, contingent on standard closing conditions. Paul Hastings’ team included key figures from their Equity Capital Markets and Corporate Life Sciences groups.
Sectors
- Healthcare
- Financial Services
- Legal Services
Geography
- United States – Many of the key participants, including the underwriters and Paul Hastings, are based in the United States.
- United Kingdom – Compass Pathways plc is incorporated in the UK, though listed on the Nasdaq.
Industry
- Healthcare – Compass Pathways operates in the healthcare sector, focusing on mental health treatments.
- Financial Services – The transaction involves financial services entities such as TD Cowen, Cantor, Stifel, and RBC Capital Markets.
- Legal Services – Paul Hastings, a law firm, is providing advisory services for this transaction.
Financials
- $4.275 per ADS – The price per American Depositary Share in the offering.
- $4.2649 per pre-funded warrant – Price set for pre-funded warrants offered to certain institutional investors.
- $5.796 per ADS Warrant – Exercise price per American Depositary Share for warrants.
- $150 million – Expected initial gross proceeds to Compass Pathways from the offering.
- $353 million – Potential total gross proceeds if all ADS Warrants are fully exercised for cash.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Compass Pathways plc | Target Company | Company | A healthcare company focused on mental health treatments, undergoing an ADS offering. |
| Paul Hastings | Legal Advisor | Company | Legal firm advising on the transaction, renowned for expertise in equity capital markets. |
| TD Cowen | Joint Bookrunner | Company | Participating as a lead manager in the ADS offering. |
| Cantor | Joint Bookrunner | Company | Participating as a lead manager in the ADS offering. |
| Stifel | Joint Bookrunner | Company | Participating as a lead manager in the ADS offering. |
| RBC Capital Markets | Joint Bookrunner | Company | Participating as a lead manager in the ADS offering. |