Liminatus Pharma Jumps on $30 Million Investment MOU
Clinical-stage biotech signs non-binding agreement with Capital Trust Group, representing a significant potential cash infusion for its immunotherapy research.
Liminatus Pharma (NASDAQ: LIMN), a clinical-stage biotechnology company, saw its shares rise in Thursday trading after announcing a non-binding Memorandum of Understanding for a $30 million equity investment from Capital Trust Group.
The potential financing represents a significant capital injection for the company, amounting to over 20% of its roughly $145 million market capitalization. Shares of Liminatus Pharma were trading up 2.4% at $1.45 in morning trading, as investors reacted to the news that could provide a crucial runway for the company's research and development efforts.
The proposed investment is structured through an earn-out mechanism and is intended to fund the advancement of Liminatus's pipeline of immunotherapy assets. According to the press release issued Thursday, the New Zealand-based investment firm Capital Trust Group intends to subscribe to newly issued shares, with both parties aiming to finalize a definitive agreement in November 2025.
"We believe that this MOU marks the beginning of a long-term partnership with CTG," said Chris Kim, CEO of Liminatus Pharma, in a statement. "The equity financing would strengthen our financial foundation."
Liminatus is a preclinical firm focused on immuno-oncology, a highly competitive and capital-intensive field. The company's lead asset is IBA101, a next-generation anti-CD47 molecule designed for cancer therapy. The company has previously stated a goal of submitting an Investigational New Drug (IND) application to the FDA for IBA101 in the third quarter of 2025.
For a company with no revenue and negative earnings, such financing is critical. The stock has experienced significant volatility over the past year, trading as high as $33.66 and as low as $1.11. Year-to-date, the stock remains down significantly, reflecting the market's high-risk assessment of preclinical biotech ventures.
The agreement, while a positive signal, remains conditional. The deal is subject to the completion of due diligence, the negotiation of definitive agreements, and compliance with Nasdaq and U.S. securities regulations. The press release also notes the investment is structured via an "earn-out mechanism," the specific terms and milestones of which were not disclosed, adding a layer of uncertainty to the final payout.
Beyond the immediate equity investment, the two firms have also agreed to explore future strategic cooperation, including the possibility of digital bond financing programs, with discussions slated to begin in mid-November.
This potential funding arrives at a pivotal moment for Liminatus as it works to move its therapeutic candidates from the laboratory toward clinical trials. If finalized, the $30 million investment could provide the necessary capital to achieve key R&D milestones and move closer to generating clinical data, a key value inflection point for any biotech company.