SAN DIEGO - Fate Therapeutics, Inc. (NASDAQ: NASDAQ:FATE), a clinical-stage biopharmaceutical company, has announced the pricing of its public stock offering and a concurrent private placement of pre-funded warrants.
The public offering consists of 14,545,454 shares of common stock priced at $5.50 per share. The private placement involves pre-funded warrants to purchase 3,636,364 shares at $5.499 each, slightly less than the public offering price due to the $0.001 exercise price per share.
The combined gross proceeds from both the underwritten offering and private placement are expected to reach approximately $100 million before fees and expenses. BofA Securities, Jefferies, and Leerink Partners are serving as joint bookrunning managers for the transaction. The closure of the financing is anticipated by Thursday, subject to standard closing conditions.
Fate Therapeutics has stated that the net proceeds will be allocated towards clinical trials, nonclinical studies, manufacturing costs for product candidates, preclinical research and development, and other corporate expenses. The company focuses on developing immunotherapies derived from induced pluripotent stem cells (iPSC) for cancer and autoimmune diseases.
The securities offered in the private placement have not been registered under the Securities Act and will be sold in accordance with exemption provisions. The pre-funded warrants are to be issued to accredited investors affiliated with Redmile Group, LLC, and other institutional investors, including Adage Capital Partners LP., Boxer Capital, Deep Track Capital, OrbiMed, and Suvretta Capital.
A shelf registration statement for the securities was filed with the SEC on November 8, 2023, and became effective on November 27, 2023. Details of the offering will be available through a final prospectus supplement filed with the SEC.
This news is based on a press release statement from Fate Therapeutics and contains forward-looking statements regarding the offering and its expected proceeds. These statements are subject to risks and uncertainties, and actual results may differ materially. The company has not announced any plans to update forward-looking statements.
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