Aquestive Therapeutics Announces Closing of Underwritten Public Offering of Common Stock
Aquestive Therapeutics, Inc. successfully closed a public offering of 16,666,667 shares of common stock at $4.50 per share, raising approximately $75.0 million. Leerink Partners and Piper Sandler were the joint bookrunning managers for the offering. The Company aims to advance medicines using innovative science and delivery technologies.
The completion of Aquestive Therapeutics' public offering is a significant financial event that merits attention due to the substantial capital infusion it represents for the company. The offering price of $4.50 per share for over 16 million shares translates to an approximate gross proceed of $75 million. This capital increase is pivotal for the company's operational and strategic initiatives, potentially accelerating the development of its pharmaceutical products and enhancing its delivery technologies.
When a company such as Aquestive increases its financial reserves, it typically aims to invest in research and development, expand its market reach, or reduce existing debt. The influx of funds can also impact the company's financial health by altering its debt-to-equity ratio, which is a key indicator watched by investors. However, it's essential to note that the dilutive effect of increasing the number of shares outstanding can lead to earnings per share (EPS) reduction, which might concern current shareholders.
Investors should monitor how Aquestive allocates the raised capital, as efficient use can lead to growth and increased shareholder value, while mismanagement could result in an adverse outcome. The participation of reputable financial institutions as bookrunners and advisors suggests a vote of confidence in Aquestive's prospects, which might influence investor sentiment.
From a market perspective, the successful closing of Aquestive's public offering is a testament to the market's appetite for investment in the pharmaceutical sector, especially in companies that focus on innovative science and delivery technologies. The price point of the offering and the amount raised are reflective of the company's market valuation and investor interest.
It is important to analyze the competitive landscape and the demand for novel pharmaceutical solutions to understand the potential impact of Aquestive's capital raise. If the company's pipeline addresses unmet medical needs or presents significant improvements over existing treatments, the fresh capital could enable it to capture greater market share. Conversely, if the market is saturated or if Aquestive faces stiff competition, the raised funds might not translate into proportional business growth.
Additionally, the role of financial advisors in the offering indicates strategic planning behind the capital raise. The market's response to the offering, in terms of stock price fluctuation and trading volume, will provide further insights into the perceived potential of Aquestive's future growth.
Legally, the offering has been executed in compliance with the SEC regulations, as evidenced by the use of a previously filed and effective Registration Statement on Form S-3. This compliance is essential for the legitimacy of the offering and to avoid any potential legal complications that could arise from regulatory oversights.
The explicit statement that the press release does not constitute an offer to sell or a solicitation of an offer to buy and the clarification regarding the legality of sales in various jurisdictions, are standard legal disclaimers. These disclaimers are meant to protect the company and the underwriters from legal liabilities associated with the offering process.
Investors should appreciate the importance of these legal frameworks, as they ensure that the company adheres to the necessary disclosure requirements, providing transparency and maintaining market integrity. The legal structuring of such offerings can also impact the speed and efficiency with which the company can access new capital.
03/25/2024 - 08:00 AM
WARREN, N.J., March 25, 2024 (GLOBE NEWSWIRE) -- Aquestive Therapeutics, Inc. (NASDAQ: AQST) (“Aquestive” or the “Company”), a pharmaceutical company advancing medicines to bring meaningful improvement to patients’ lives through innovative science and delivery technologies, today announced the closing of its previously announced underwritten public offering of 16,666,667 shares of its common stock at the public offering price of $4.50 per share. At closing, the aggregate gross proceeds of the offering to Aquestive, before deducting underwriting discounts and commissions and other offering expenses paid by Aquestive, were approximately $75.0 million .
Leerink Partners and Piper Sandler acted as joint bookrunning managers for the offering. Oppenheimer & Co. acted as lead manager for the offering. H.C. Wainwright & Co. and Brookline Capital Markets, a division of Arcadia Securities, LLC, acted as financial advisors to the Company.
The securities were offered by the Company pursuant to a Registration Statement on Form S-3 (File No. 333-254775) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on April 5, 2021. A final prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC on March 21, 2024 and is available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the underwritten offering may also be obtained by contacting: Leerink Partners, LLC, Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, or by telephone at (800) 808-7525 ext. 6105, or by email at syndicate@leerink.com, and Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, or by telephone at (800) 747-3924, or by email at prospectus@psc.com.
This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that state or jurisdiction.
About Aquestive Therapeutics
Aquestive Therapeutics, Inc. (NASDAQ: AQST) is a pharmaceutical company advancing medicines to bring meaningful improvement to patients’ lives through innovative science and delivery technologies. The Company is developing orally administered products to deliver complex molecules, providing novel alternatives to invasive and inconvenient standard of care therapies. Aquestive has five commercialized products marketed by its licensees in the U.S. and around the world and is the exclusive manufacturer of these licensed products. The Company also collaborates with pharmaceutical companies to bring new molecules to market using proprietary, best-in-class technologies, like PharmFilm®, and has proven drug development and commercialization capabilities. Aquestive is advancing a late-stage proprietary product pipeline focused on treating diseases of the central nervous system and an earlier stage pipeline for the treatment of severe allergic reactions, including anaphylaxis.
Investor Inquiries:
ICR Westwicke
How many shares were offered in Aquestive Therapeutics' recent public offering?
Aquestive Therapeutics offered 16,666,667 shares of its common stock in the public offering.
At what price per share did Aquestive Therapeutics sell its common stock in the public offering?
Aquestive Therapeutics sold its common stock at $4.50 per share in the public offering.
How much did Aquestive Therapeutics raise in the public offering?
Aquestive Therapeutics raised approximately $75.0 million in the public offering.
Who were the joint bookrunning managers for Aquestive Therapeutics' public offering?
Leerink Partners and Piper Sandler acted as joint bookrunning managers for Aquestive Therapeutics' public offering.
What is the focus of Aquestive Therapeutics as a pharmaceutical company?
Aquestive Therapeutics aims to advance medicines through innovative science and delivery technologies to improve patients' lives.
