Why Minerva Neurosciences Stock Is Shooting Higher Today

Minerva Neurosciences, Inc NERV are shooting higher after the company bagged a $20 million investment from Boehringer Ingelheim and Federated Hermes Kaufmann Funds via private placement of its shares, priced at a premium to the current levels.

Minerva has agreed to sell an aggregate of 1.43 million shares of its common stock at a purchase price of $10 per share and pre-funded warrants to purchase an aggregate of 575,575 shares at a purchase price of $9.99 per pre-funded warrant.

Minerva intends to use the net proceeds to support potential regulatory approval in the U.S. and the market launch of roluperidone, which is being developed to treat negative symptoms of schizophrenia.

Roluperidone is a compound that blocks serotonin, sigma, and α-adrenergic receptors involved in regulating mood. Last month the company received confirmation from the U.S. Food and Drug Administration (FDA) that the company's New Drug Application (NDA) for roluperidone in patients with schizophrenia has been filed and assigned a standard review classification.

The private placement is expected to close on or about June 30, 2023.

Under the terms of the private investment in public equity (PIPE), Boehringer Ingelheim will have the right to designate one individual to attend all meetings of Minerva's board or any committee thereof in a non-voting, observer capacity.

Price Action: NERV shares are trading higher by 53.6% to $9.26 on the last check Wednesday.