Shares of InMed Pharmaceuticals, Inc. (INM) jumped 160% following news of a definitive merger agreement with privately held Mentari Therapeutics, Inc., a biotechnology company developing therapies for migraine prevention.
InMed will merge with Mentari in an all-stock transaction, combining Mentari's differentiated migraine pipeline with InMed's public market infrastructure. The combined entity will operate as Mentari Therapeutics and trade on the Nasdaq Capital Market under a new ticker symbol.
The merger is supported by a concurrent oversubscribed US$290 million private placement led by Fairmount and joined by major investors including Commodore Capital, Deep Track Capital, Janus Henderson Investors, a16z Bio + Health, Venrock Healthcare Capital Partners, Wellington Management, TCGX, Blackstone Multi-Asset Investing, BB Biotech, Farallon Capital, RTW Investments, LP, Vivo Capital, and Perceptive Advisors. Proceeds are expected to fund operations through 2028, covering key clinical milestones.
Mentari's lead programs include MT-001, an anti-PACAP monoclonal antibody with Phase 2a proof-of-concept data expected in 2028, and MT-002, a first-in-class anti-CGRP/ anti-PACAP bispecific antibody with Phase 1 data anticipated in 2027. These therapies aim to address unmet needs in migraine patients, as current treatments fail to deliver adequate relief for a significant proportion of sufferers.
Under the terms of the merger, pre-merger InMed shareholders are expected to own approximately 1.51% of the combined company, which will have a pro forma equity value of about US$421.4 million, inclusive of the private placement. Additional financial consideration may be available through contingent value rights tied to monetization of InMed's legacy programs.
The transaction has been approved by both companies' boards and is expected to close in the second half of 2026 subject to shareholder approval and customary conditions.
InMed's CEO Eric A. Adams described the merger as "an excellent opportunity for shareholders to participate in the development of an exciting new drug pipeline with significant therapeutic and commercial potential". Mentari's Chair Julie Bruno emphasized the company's focus on advancing PACAP-targeted therapies, which have generated strong interest among headache specialists.
Separately, InMed amended its preferred investment options with Armistice Capital Master Fund Ltd., lowering the exercise price from $16.60 to $0.80 per share. The company granted Armistice rights to subscribe for up to 278,761 common shares, subject to adjustment, providing the fund with a more favorable entry point.
The company granted Armistice rights to subscribe for up to 278,761 common shares at $16.60 per share, subject to adjustment.
INM has traded between $0.57 and $7.98 over the past year. The stock is currently trading at $1.80, up 164.43%.
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May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.