The Week’s Largest Closed Equity Transaction:

• On November 2, 2022, Lusaris Therapeutics (Private), whose lead program is a sublingual formulation of DMT, a fast-acting and rapidly clearing psychedelic used to treat severe neuropsychiatric conditions, closed a Series A Funding round for $60M.
  • RA Capital Management incubated Lusaris and led the Series A round with participation from Venrock Healthcare, Deep Track Capital, Boxer Capital, and another undisclosed investor.

Another Interesting Equity Transaction:

• On November 1, 2022, Greenlane (GNLN: Nasdaq), one of the largest global platforms for the development, and distribution of cannabis accessories, packaging, and vape products, closed a $7.5M best efforts public offering of units.
  • 33M units were sold at $.90 per unit.
  • Each unit contains one common share and two warrants with an exercise price of $.90 (0% premium) and a seven-year life. The warrant structure is unusual: Usually, we see either ½ of a warrant per unit or one whole warrant per unit, struck with a premium of 20-30% and a two or 3-year life.
  • The Black Scholes value of the warrant package totaled nearly $.74 per unit, reducing the net share price to about $.16.
  • Unsurprisingly, on the day the deal was announced, Greenlane’s stock crashed 60% on record volume. The company leads our list of biggest YTD decliners, down 97%.

Public Company Raises: 

• Two of the three companies that raised capital this week were public. One trades in Canada on the TSX, and both trade in the U.S. (one on OTCQX and one on Nasdaq.)

Equity vs. Debt Cap Raises: 

• Equity accounted for 85.9% of this week’s capital raises.