Equity Raises:

• On October 21, 2025, ATAI Life Sciences (ATAI: Nasdaq), a clinical-stage psychedelics sector company, closed a public offering for gross proceeds of approximately $149.5M.
• The $5.48 share price represented an 8% discount to the pre-announcement price.
• The offering included participation from prominent new investors, including Janus Henderson Investors, Foresite Capital, Deep Track Capital, and HBM Partners.
• The new capital will fund advancing BPL-003, for treatment-resistant depression, into Stage 3 trials, and progressing Stage 2 trials for VLS-01 and EMP-01, for depression and social anxiety, respectively.
• The raise is projected to fund the company into 2029.
• On October 21, 2025, PleoPharma, a private company focused on finding treatments for cannabis-related health issues, announced the closing of a $36M Series B Financing.
• Proceeds will advance the company’s lead asset, PP-01, an investigational product aimed at mitigating cannabis withdrawal in patients with cannabis use disorder. The therapy was granted fast-track designation earlier in the year by the FDA.

Public vs. Private Raises: 

• One of the two closed equity transactions was for a public company listed on Nasdaq in the U.S.

Equity vs. Debt Cap Raises:

• Debt accounted for 47% of trailing 8-week capital raises. We believe that a successful move to S3 will increase the likelihood of other near-term regulatory moves, such as the SAFER or STATES. The real question is what kind of price increase it will take before cannabis companies are willing to issue equity. Will the change to S3 result in a lasting price pop that could lead to re-equitization?