Compass Pathways plc (Nasdaq: CMPS) has announced the exercise of outstanding warrants, generating approximately $200 million in gross proceeds. The financing milestone strengthens the company’s balance sheet and supports the continued advancement of its late-stage clinical pipeline.
The warrants, originally issued on January 13, 2025, totaled 35,059,448. Upon exercise, the company issued 15,160,619 American Depositary Shares (ADSs). In addition, certain institutional investors received pre-funded warrants to purchase up to 19,898,829 ADSs in lieu of ADSs.
Capital Deployment to Advance Clinical Programs
The newly raised capital, together with existing cash and cash equivalents, will primarily fund critical development initiatives. In particular, the company plans to allocate proceeds toward:
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Ongoing COMP005 and COMP006 Phase 3 trials
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The Phase 2b/3 trial of COMP360 in PTSD
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Expanded commercial readiness efforts
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Working capital and general corporate purposes
Importantly, these investments are designed to accelerate development timelines while maintaining disciplined financial management. By reinforcing its liquidity position, the company gains additional flexibility to navigate regulatory milestones and operational requirements.
Extended Cash Runway Through 2028
The net proceeds from this transaction, combined with approximately $141 million raised in a public offering that closed on February 20, 2026, significantly enhance the company’s financial outlook. As a result, total available capital is expected to fund operating expenses and capital expenditures into 2028.
This extended runway provides stability as late-stage trials progress and potential commercialization planning advances. Moreover, it reduces near-term financing risk, allowing leadership to focus on execution and long-term value creation.
Overall, the warrants exercise represents a strategic capital event that positions the company to advance its clinical programs with greater confidence and financial strength.
