Minerva
Neurosciences (NERV) filed Form S-3 on August 10. The form S-3 is a three-year
prospectus that allows the company to from time to time, at their discretion,
sell shares to raise capital up to $200 million. The
supplemental part of the prospectus calls for a takedown of up to $50 million
worth of stock sales through investment banker Jeffries. The company held approximately
$108 million in cash as of 6-30-18. If the company initiates the complete takedown
of $50 million, then the cash will increase to around $156 million, and the dilution would be around
6.2 million shares at current prices to increase the total share count to 45
million shares outstanding. The
companies burn rate is around $13 million per quarter at present.
The phase 3 clinical trial readout of MIN-101 for negative symptoms of schizophrenia, is scheduled for the first half of 2019. So beginning the capital raising process now makes sense. The S-3 filing gives the company the discretion of when and how much capital to raise over the next three years. Below is a chart of Minerva. Thank you for reading.
The phase 3 clinical trial readout of MIN-101 for negative symptoms of schizophrenia, is scheduled for the first half of 2019. So beginning the capital raising process now makes sense. The S-3 filing gives the company the discretion of when and how much capital to raise over the next three years. Below is a chart of Minerva. Thank you for reading.
