Bright Minds Biosciences (NASDAQ: DRUG) surges 16.50% on $100M public offering and 15% underwriters option

Bright Minds Biosciences Inc. (NASDAQ: DRUG) surged 16.4979% in pre-market trading on January 7, 2026, following the announcement of a $100 million public offering of common shares and pre-funded warrants. The underwriters have a 30-day option to purchase an additional 15% of shares, signaling investor confidence in the company’s growth strategy.

The proceeds will fund clinical trials for drug candidates targeting absence seizures, developmental and epileptic encephalopathy (DEE), and Prader-Willi Syndrome. A portion of the capital will also support phase 1 trials for BMB-105 and earlier-stage research programs.

Jefferies, TD Cowen, Piper Sandler & Co., and Cantor are co-managing the offering, which utilizes a previously filed SEC registration statement. The move underscores the company’s focus on advancing its pipeline of serotonergic agonists for neurological and psychiatric disorders.

Analysts highlight the strategic timing of the offering, aligning with recent positive Phase 2 trial data for BMB-101 in epilepsy. The capital raise positions Bright Minds to accelerate development of therapies with high unmet medical needs, potentially driving long-term value as clinical milestones approach in 2026.

With a strong emphasis on innovative treatments for neurological conditions, Bright Minds is well-positioned to expand its market presence. The company’s focus on serotonergic agonists offers a novel therapeutic approach to a range of disorders, setting it apart in a competitive landscape. Clinical advancements are expected to attract further investment and partnerships in the coming months.

As the company moves forward with these trials, market analysts remain optimistic about the long-term potential of Bright Minds’ pipeline, particularly in areas of high unmet medical need such as epilepsy and Prader-Willi Syndrome. This public offering marks a pivotal moment in the company’s development trajectory.