08:27 AM EDT, 06/27/2025 (MT Newswires) -- Lyra Therapeutics ( LYRA ) said Friday it launched a direct offering to sell 423,372 shares or pre-funded warrants as a substitute, and a concurrent private placement of warrants for the purchase of 846,744 shares of common stock, priced at-the-market.

The combined effective purchase price for each share and associated private placement warrant is $11.81, the biotechnology company said.

The gross proceeds from the offering are expected to be around $5 million, with up to approximately $9.8 million of additional gross proceeds assuming the full exercise of the private placement warrants, the company said.

Lyra said it intends to use the net proceeds from the offering for working capital and other general corporate purposes, including potential clinical development, manufacturing, and other pre-commercialization expenses for LYR-210. The offering is expected to close on Friday.

Shares were over 23% lower in recent premarket activity.