Ovid Prices PIPE of up to $175 Million

Rare Daily Staff

Ovid Therapeutics said it has entered into a securities purchase agreement for a PIPE financing expected to result in gross proceeds of up to $175 million to the company.

The total includes initial gross proceeds of approximately $81 million. The PIPE financing is expected to close on or about Oct. 6, 2025, subject to satisfaction of customary closing conditions.

New investors Janus Henderson Investors, RA Capital Management, Eventide Asset Management, Coastlands Capital, Blue Owl Healthcare Opportunities, Balyasny Asset Management, Saturn V Capital, and Ally Bridge Group participated in the PIPE alongside existing investors including ADAR1 Capital Management and Affinity Healthcare Fund LP, as well as new and existing large investment management firms.

The company intends to use the net proceeds from the initial closing of the PIPE financing, together with its existing cash, cash equivalents, and marketable securities, to finance research and development, general corporate expenses, and working capital needs. Ovid said it expects its cash will fund its operating plan into 2028.

Under the terms of the securities purchase agreement, the company is selling an aggregate of 57,722 shares of its Series B non-voting convertible preferred stock, Series A warrants to purchase 38.5 million shares of its common stock and/or pre-funded warrants, and Series B warrants to purchase 28.8 million shares of its common stock and/or pre-funded warrants.

Each share of Series B preferred stock is being sold together with a Series A warrant to purchase 667 shares of common stock and/or pre-funded warrants and a Series B warrant to purchase 500 shares of common stock and/or pre-funded warrants. The Series A warrants and Series B warrants will each have an exercise price of $1.40 per share.

The shares of Series B preferred stock are convertible into an aggregate of 57.7 million shares of the company’s common stock, with each share of Series B preferred stock convertible into 1,000 shares of common stock, subject to approval by the company’s stockholders and certain beneficial ownership limitations set by each holder.