CAMBRIDGE, Mass. - Vor Bio (NASDAQ:VOR), a biotechnology firm specializing in cell and genome engineering with a current market capitalization of $57.55 million, has secured a private investment in public equity (PIPE) deal expected to yield approximately $55.6 million in gross proceeds. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 4.69, indicating robust short-term financial health. The financing, announced today, is anticipated to close on December 30, 2024, contingent upon customary closing conditions.
Under the agreement terms, Vor Bio will issue around 55.9 million shares of common stock along with warrants to purchase approximately 69.8 million shares. The combined price for each share and accompanying warrant is $0.99425, with warrants exercisable at $0.838 each until the seventh anniversary of the closing date. If exercised in full, the warrants could provide Vor Bio with an additional $58.5 million. InvestingPro analysis suggests the stock is currently undervalued, with analyst price targets ranging from $8 to $18, significantly above current trading levels.
The PIPE is led by new investor Reid Hoffman and includes participation from RA Capital Management, Vor Bio's largest shareholder. Both Hoffman and RA Capital Management will gain one board seat and one board observer seat as part of the agreement.
Vor Bio plans to allocate the net proceeds toward advancing clinical and preclinical development of its pipeline candidates and general corporate functions. While InvestingPro data indicates the company is quickly burning through cash, it maintains more cash than debt on its balance sheet. The company is preparing to release updated data from its Phase 1/2 VBP301 and Phase 1/2a VBP101 clinical trials in 2025. InvestingPro subscribers have access to 12 additional key insights about Vor Bio's financial health and market performance. These studies are evaluating VCAR33ALLO and trem-cel, respectively, as potential treatments for acute myeloid leukemia (AML), a notably lethal cancer.
The securities issued in this PIPE have not been registered under the Securities Act of 1933 and, as such, may not be offered or sold in the United States barring an effective registration statement or an applicable exemption from registration requirements. Vor Bio has agreed to file a registration statement with the Securities and Exchange Commission for the resale of the common stock and stock issuable upon warrant exercise.
Stifel is serving as the sole placement agent for the PIPE.
This financial move is expected to extend Vor Bio's cash runway through the release of updated data from its VBP101 and VBP301 trials in 2025.
The information in this article is based on a press release statement from Vor Bio.
In other recent news, Vor Bio has seen significant developments. The clinical-stage cell and genome engineering company has appointed Han Choi, M.D., LL.M., as its new Chief Financial Officer. Dr. Choi brings over 25 years of experience in investment management, business development, and corporate strategy within the pharmaceutical and biotechnology sectors.
The company also reported positive data from its Phase 1/2 VBP101 study, which evaluated the treatment candidate, trem-cel, in combination with Mylotarg for patients with acute myeloid leukemia. This news was met with approval from H.C. Wainwright and Baird, both maintaining their positive ratings on the company's shares.
Further, Vor Bio released preliminary pharmacokinetic data for VCAR33ALLO, another pipeline product, and announced a new preclinical asset, VADC45, targeting a protein associated with various blood cancers. However, Vor Bio has been notified of noncompliance with Nasdaq's minimum bid price rule, with a deadline until February 25, 2025, to elevate its share price above $1.00 for at least ten consecutive business days. These are recent developments in the company's journey.
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