Allogene Therapeutics Announces Pricing of $110 million Offering of Common Stock
Rhea-AI Summary
Allogene Therapeutics (Nasdaq: ALLO), a clinical-stage biotech firm, announced a $110 million common stock offering, pricing 37,931,035 shares at $2.90 each. The offering, backed by mutual funds, institutional investors, and the company's board and executives, is expected to close by May 16, 2024. Managed by Goldman Sachs, the offering is under a shelf registration statement filed in March and declared effective by the SEC in April 2024. The proceeds will be used for continued development of their AlloCAR T™ products for cancer and autoimmune diseases.
Positive
- Allogene Therapeutics raised $110 million through its common stock offering.
- Offering price set at $2.90 per share indicates investor confidence.
- Backed by mutual funds, institutional investors, and the company's board and executives, indicating strong internal and external support.
- Proceeds to support the continued development of AlloCAR T™ products, which could drive future growth.
Negative
- The stock offering could lead to shareholder dilution due to the increase in the number of shares outstanding.
- The expected closing date of May 16, 2024, introduces a short-term risk if market conditions change.
- Gross proceeds are before deducting underwriting discounts, commissions, and expenses, reducing the net amount received.
News Market Reaction 1 Alert
On the day this news was published, ALLO gained 2.07%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
SOUTH SAN FRANCISCO, Calif., May 13, 2024 (GLOBE NEWSWIRE) -- Allogene Therapeutics, Inc. (Nasdaq: ALLO), a clinical-stage biotechnology company pioneering the development of allogeneic CAR T (AlloCAR T™) products for cancer and autoimmune disease, today announced the pricing of an underwritten offering of 37,931,035 shares of its common stock at a price of
The offering is anchored by mutual funds and large institutional investors and includes leading healthcare specialists as well as certain members of the Allogene Board of Directors and Executive Management Team. The offering is expected to close on or about May 16, 2024, subject to customary closing conditions.
Goldman Sachs & Co. LLC is acting as sole book-running manager for the offering.
The securities described above are being offered by Allogene pursuant to a shelf registration statement (including a prospectus) filed on March 14, 2024 with the Securities and Exchange Commission (SEC), which was declared effective on April 25, 2024. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available for free on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the offering, when available, may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Allogene Therapeutics
Allogene Therapeutics, with headquarters in South San Francisco, is a clinical-stage biotechnology company pioneering the development of allogeneic chimeric antigen receptor T cell (AlloCAR T™) products for cancer and autoimmune disease. Led by a management team with significant experience in cell therapy, Allogene is developing a pipeline of “off-the-shelf” CAR T cell product candidates with the goal of delivering readily available cell therapy on-demand, more reliably, and at greater scale to more patients.
Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The press release may, in some cases, use terms such as "predicts," "believes," "potential," "proposed," "continue," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements include statements regarding the completion and timing of the offering. Various factors may cause differences between Allogene’s expectations and actual results as discussed in greater detail in Allogene’s filings with the SEC, including without limitation in its Form 10-Q for the quarter ended March 31, 2024 filed on May 13, 2024. Any forward-looking statements that are made in this press release speak only as of the date of this press release. Allogene assumes no obligation to update the forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.
AlloCAR T is a trademark of Allogene Therapeutics, Inc.
Allogene Media/Investor Contact:
Christine Cassiano
EVP, Chief Corporate Affairs & Brand Strategy Officer
Christine.Cassiano@allogene.com
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