Compass Pathways, Psilocybin Research Firm, Files For Nasdaq IPO

It appears that some authenticity and validation might be coming to the psychedelics space. Compass Pathways, a UK startup focused on psiloycbin, this week filed for its initial public offering on the Nasdaq Global Markets exchange. The company is currently proposed to trade under the symbol “CMPS”.

As per the filing made Friday, the company is looking to raise US$100 million within the round, placing a valuation on the firm of more than US$500 million. This figure is significant, as it gives early backs roughly a 10x on the valuation of their initial investment. However, the figure is subject to change, with the amount evidently being used simply as a placeholder currently.

The company is currently in the process of conducting clinical trials on utilizing psilocybin in treatment-resistant depression, which are currently in Phase IIb. Although trials have been placed on hold as a result of the onging pandemic, the company has been planning how to restart the study as soon as it “is right and safe to do so.” Further, a funding round conducted in April to the tune of $80 million was put towards furthering research surrounding psilocybin therapy.

In terms of financials, it’s easy to see why the company is looking for an easier means of accessing capital. The company churned through $26.4 million in the first half of the current year in the form of operating expenses, as compared to $7.6 million over the same period in 2019. While current cash reserves amount to $67.6 million, this leaves only a few quarters of runway with current burn rates.

Proceeds from the raise are expecting to go towards further funding of clinical trials, research and clinical development, as well as for general business development activities.

A timeline for the closing of the IPO round has not yet been provided.


Information for this briefing was found via Edgar and Compass Pathways. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

Compass Pathways Closes Enrollment For Phase IIb Psilocybin Clinical Trial

Compass Pathways (NASDAQ: CMPS) this morning provided a brief update to the market on the...

Monday, June 28, 2021, 07:37:00 AM

David Nutt: Amanita Muscaria Due For More Research – The Daily Dive

Today on the Daily Dive, our host Cassandra Leah sits down with Dr David Nutt,...

Wednesday, March 10, 2021, 01:30:00 PM

Compass Pathways Granted Its Tenth Overall Patent Related To Psilocybin

Compass Pathways (NASDAQ: CMPS) this morning issued a brief release, indicating it has been granted...

Tuesday, November 23, 2021, 07:55:20 AM

Compass Pathways Sees “Reduction In Depressive Symptom” In Phase IIb Psilocybin Clinical Trial

Compass Pathways (Nasdaq: CMPS) announced today that its phase IIb clinical trial of COMP360 psilocybin therapy...

Tuesday, November 9, 2021, 12:33:00 PM

Compass Pathways To Start Phase II Trial For Psilocybin PTSD Therapy

Compass Pathways (Nasdaq: CMPS) this morning announced that it will be launching the phase II...

Wednesday, November 3, 2021, 09:52:00 AM