New York, July 22, 2026 — InMed Pharmaceuticals Inc. (NASDAQ: INM) saw its stock price climb 21% to $1.87 during late-morning trading on the Nasdaq, following the announcement of a significant capital infusion from its merger partner, Mentari Therapeutics. Mentari disclosed a $200 million private placement, which raises the total financing for the proposed merger to $490 million.
Enhanced Funding Structure
The new placement represents a 69% increase from the $290 million financing plan outlined in May. According to company filings, the additional capital is expected to support operations through 2029 and fund the company until two Phase 2a clinical trial results are available. This is a critical milestone for Mentari, which is developing migraine therapies targeting the PACAP pathway.
Impact on Shareholder Value
While the increased funding is positive, it comes with a dilution effect. The company estimates that fully diluted shares will rise by 33% to approximately 601.20 million, compared to 450.55 million under the May plan. However, the financing per fully diluted share is projected to grow by about 27%, from $0.64 to $0.82. This suggests that the additional capital is being raised at a rate that outpaces dilution, potentially enhancing per-share value.
Legacy InMed shareholders will see their ownership stake decrease. The preliminary estimate shows that InMed’s diluted ownership in the merged entity will be roughly 1.13%, down from the 1.51% projected in May. This calculation assumes InMed’s 6.8 million legacy diluted shares remain unchanged.
Market Reaction and Volatility
InMed’s stock experienced significant volatility during the session, reaching a high of $5.13 before pulling back. Trading volume surged to 47.5 million shares by 11:09 a.m. EDT, indicating strong investor interest. Meanwhile, the broader biotech sector, as measured by the SPDR S&P Biotech ETF (NYSEARCA: XBI), slipped 1.1%.
Merger Details and Pipeline
The latest fundraising is expected to close concurrently with the previously announced $290 million placement, just ahead of the merger completion. The combined entity will operate under the Mentari name and adopt a new Nasdaq ticker symbol. Mentari’s pipeline includes MT-001, targeting the PACAP migraine pathway, and MT-002, designed to inhibit both PACAP and CGRP. The company expects to submit regulatory filings for MT-001 by mid-2026 and for MT-002 in the first quarter of 2027.
CEO Greg Divis commented, “This financing represents an opportunity to deliver enhanced migraine relief and advance our innovative therapies.”
Financial Position and Risks
As of March 31, InMed reported cash holdings of just $5.16 million, with management expressing significant uncertainty about its ability to continue as a going concern. The company’s sole revenue source, BayMedica, was in the process of being shut down. To address legacy shareholder concerns, pre-merger holders will receive contingent value rights (CVRs) entitling them to 90% of net proceeds from sales of legacy assets. However, the filing warns that these CVRs may not result in any payout.
Key risks remain: the financing and merger are not yet finalized. Completion depends on shareholder approval, an effective SEC registration statement (S-4), and Nasdaq listing approval. A reverse stock split could also occur as part of the deal.
Overall, the enhanced financing improves the deal’s funding ratio and provides a clearer path to clinical milestones, though it reduces the initial stake for legacy InMed holders. The primary challenge now lies in executing both transactions on agreed terms.
