NEW YORK, July 22, 2026, 11:24 a.m. EDT
Shares of InMed Pharmaceuticals Inc. NASDAQ:INM climbed 21% to $1.87 during late-morning trading on the Nasdaq. Mentari Therapeutics, which is merging with InMed, revealed a $200 million private placement.
The placement raises total merger financing to $490 million. Mentari stated that proceeds would fund the company through 2029. The firm also anticipates this capital will support operations until two Phase 2a results are available.
The main trade-off for investors can be quantified. Disclosed financing is increasing at a quicker pace than the projected number of shares.
Funding rises 69% compared with the May plan. The company’s estimates show fully diluted shares climbing 33%. As a result, financing per projected diluted share grows approximately 27%.
| Metric | May plan | July 22 plan | Change |
|---|---|---|---|
| Private financing announced | $290 million | $490 million | +69% |
| Projected fully diluted shares | 450.55 million | 601.20 million | +33% |
| Financing per fully diluted share | $0.64 | $0.82 | +27% |
| Legacy InMed diluted ownership | 1.51% | Roughly 1.13%, preliminary | -0.38 percentage point |
The 1.13% holding is based on an initial estimate. This calculation presumes InMed’s 6.8 million legacy diluted shares are unchanged. Documents from May had projected a 1.51% stake.
This is significant. While legacy ownership decreases, the merged company secures increased funding for each diluted share.
Markets experienced volatility. InMed climbed to $5.13, then pulled back. By 11:09 a.m. EDT, trading volume totaled 47.5 million shares. The SPDR S&P Biotech ETF (NYSEARCA:XBI) slipped 1.1%.
The latest fundraising is expected to complete just ahead of the merger, running concurrently with the previous $290 million placement. The merged entity will keep the Mentari name and switch to a new Nasdaq ticker.
Mentari’s MT-001 focuses on the PACAP migraine pathway, while MT-002 is designed to target both PACAP and CGRP. On Monday, Mentari stated it still expects to submit regulatory filings for MT-001 by mid-2026 and for MT-002 in the first quarter of 2027.
Chief Executive Greg Divis said the strategy “represents an opportunity to deliver enhanced migraine relief.”
InMed reported cash holdings of $5.16 million as of March 31. Management expressed significant uncertainty about ongoing operations due to liquidity concerns. BayMedica, the company’s sole source of revenue, was in the process of being shut down.
Contingent value rights will also be provided to pre-merger holders. These rights grant entitlement to 90% of net proceeds generated from sales of legacy assets. According to the filing, there is a warning that these may not result in any payout.
Risks still exist. The financing and merger have not yet been finalized. The deal depends on shareholder approval, an effective S-4, and approval for Nasdaq listing. A reverse split could also occur.
The financing boosts the deal’s funding ratio and cuts legacy holders’ initial stake. The main hurdle is now completing both transactions on the agreed terms.
