Aura Biosciences Announces Proposed Public Offering of Common Stock and Warrants

Rhea-AI Summary

Aura Biosciences (NASDAQ: AURA), a clinical-stage biotech company focused on precision therapies for solid tumors, has announced a proposed public offering of common stock and warrants. The offering includes shares of common stock, warrants to purchase common stock, and pre-funded warrants with accompanying common stock warrants.

The offering will be managed by Leerink Partners and Evercore ISI as joint bookrunning managers, with LifeSci Capital as an additional bookrunning manager. Citizens Capital Markets and Scotiabank are serving as co-managers. The offering will be conducted under a shelf registration statement that was declared effective by the SEC on April 5, 2024.

Positive

• None.

Negative

• Potential dilution of existing shareholders through new stock issuance
• Company seeking additional funding which may indicate cash needs

Insights

Biotech Financial Analyst

Aura Biosciences is raising capital through a stock and warrant offering, signaling potential cash needs for its clinical programs.

Aura Biosciences (AURA) has announced a proposed public offering that includes several securities - common stock, warrants to purchase common stock, and pre-funded warrants alongside accompanying warrants for certain investors. This capital-raising initiative comes from a clinical-stage biotech company that's working on precision therapies for solid tumors.

The offering structure with both common shares and various warrant types suggests the company is trying to maximize investor appeal while balancing dilution concerns. The inclusion of pre-funded warrants typically indicates institutional investor participation, as these instruments allow investors to pay most of the purchase price upfront while delaying taking full ownership positions.

While the press release doesn't specify the intended use of proceeds, as a clinical-stage company without marketed products, Aura likely needs capital to fund ongoing clinical trials and operations. The company has engaged multiple investment banks for this transaction, with Leerink Partners and Evercore ISI serving as joint bookrunning managers, suggesting a substantial offering size.

The timing of this offering, following the effectiveness of their S-3 shelf registration in April 2024, indicates the company had been planning this capital raise. The lack of disclosed pricing terms shows the offering is still in early stages, with final terms to be determined based on market conditions and investor interest.

For clinical-stage biotechs like Aura, such financings are critical inflection points that extend operational runway but typically come with dilution for existing shareholders. The market's reaction will largely depend on the final pricing terms and discount to current trading levels.

BOSTON, May 15, 2025 (GLOBE NEWSWIRE) -- Aura Biosciences, Inc. (“Aura”) (Nasdaq: AURA), a clinical-stage biotechnology company developing precision therapies for solid tumors designed to preserve organ function, today announced the launch of an underwritten public offering of shares of its common stock and accompanying warrants to purchase shares of its common stock and, to certain investors, pre-funded warrants to purchase shares of common stock and accompanying warrants to purchase shares of its common stock. All of the shares of common stock, pre-funded warrants and accompanying common stock warrants to be sold in the offering will be offered by Aura. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Leerink Partners and Evercore ISI are acting as joint bookrunning managers for the offering. LifeSci Capital is also acting as a bookrunning manager in the offering. Citizens Capital Markets and Scotiabank are acting as co-managers for the offering.

The offering is being made pursuant to a shelf registration statement on Form S-3 (333-278253) that was filed with the Securities and Exchange Commission (the “SEC”) on March 27, 2024 and declared effective by the SEC on April 5, 2024. The offering will be made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to this 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; Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, or by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

The final terms of the offering will be disclosed in a final prospectus supplement filed with the SEC.

About Aura Biosciences

Aura Biosciences, Inc. is a clinical-stage biotechnology company focused on developing precision therapies for solid tumors that aim to preserve organ function. Aura’s lead candidate, bel-sar (AU-011), is currently in late-stage development for primary choroidal melanoma and in early-stage development in other ocular oncology indications and bladder cancer. Aura is headquartered in Boston, MA. Aura’s mission is to grow as an innovative global oncology company that positively transforms the lives of patients.

Forward-Looking Statements

Various statements in this release concerning the timing, size, structure and completion of the proposed public offering on the anticipated terms or at all may constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, as amended, and other federal securities laws. All such forward-looking statements are based on management’s current expectations of future events and are subject to a number of substantial risks and uncertainties, many of which are outside Aura’s control, that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include fluctuations in Aura’s stock price, changes in market conditions, the final terms of the public offering and satisfaction of customary closing conditions related to the public offering, as well as those risks more fully discussed in the section entitled “Risk Factors” in the prospectus supplement and registration statement referenced above, Aura’s Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 24, 2025 with the SEC and subsequent filings with the SEC including our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. There can be no assurance that Aura will be able to complete the public offering on the anticipated terms. Accordingly, you should not place undue reliance on these forward-looking statements. All such statements speak only as of the date made, and Aura undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.

Investor and Media Contact:

Alex Dasalla
Head of Investor Relations and Corporate Communications
IR@aurabiosciences.com

Source: Aura Biosciences, Inc.

FAQ

What is the purpose of AURA's public offering of common stock and warrants?

Aura Biosciences is conducting a public offering of common stock and warrants, though the specific purpose and size of the offering were not disclosed in the announcement.

Who are the underwriters for Aura Biosciences' (AURA) stock offering?

The offering is being managed by Leerink Partners and Evercore ISI as joint bookrunning managers, LifeSci Capital as bookrunning manager, and Citizens Capital Markets and Scotiabank as co-managers.

When was AURA's shelf registration statement declared effective by the SEC?

Aura Biosciences' shelf registration statement was declared effective by the SEC on April 5, 2024.

What types of securities are included in AURA's public offering?

The offering includes shares of common stock, warrants to purchase common stock, and pre-funded warrants with accompanying common stock warrants.

How will this offering affect existing AURA shareholders?

The offering will likely result in dilution of existing shareholders' ownership stakes due to the issuance of new shares and potential exercise of warrants.