Larimar Therapeutics executes preferred stock exchange and amendment

Larimar Therapeutics ( (LRMR) ) has provided an update.

On January 21, 2026, Larimar Therapeutics entered into an exchange agreement with Blue Owl Healthcare Opportunities IV Public Investments LP under which the investor agreed to swap 2.5 million shares of Larimar common stock for 250,000 shares of the company’s Series A convertible preferred stock, a non-voting “toothless” preferred security that is convertible into common stock at a 10-to-1 ratio and participates equally with common shareholders in liquidation proceeds. In connection with this transaction, Larimar filed a Certificate of Amendment in Delaware on January 21, 2026 to double the authorized Series A preferred share count to 500,000, with the exchange expected to close on January 23, 2026 and the new preferred shares to be issued in a private, unregistered transaction relying on a statutory exemption, reflecting a balance-sheet and capital-structure adjustment rather than an immediate change in total economic ownership.

The most recent analyst rating on (LRMR) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Larimar Therapeutics stock, see the LRMR Stock Forecast page.

Spark’s Take on LRMR Stock

According to Spark, TipRanks’ AI Analyst, LRMR is a Neutral.

Score is held down primarily by weak financial performance (no revenue, widening losses, and significant cash burn) and bearish technical signals (below key moving averages with negative MACD). Positive clinical/regulatory progress for the lead program provides support, but valuation remains constrained by ongoing losses and no dividend.

To see Spark’s full report on LRMR stock, click here.

More about Larimar Therapeutics

Average Trading Volume: 1,354,894

Technical Sentiment Signal: Strong Sell

Current Market Cap: $273.9M

See more data about LRMR stock on TipRanks’ Stock Analysis page.