Biohaven Announces Proposed Public Offering of Common Shares

Rhea-AI Summary

• English
• French
• German
• Italian
• Korean
• Spanish

Biohaven (NYSE: BHVN) has announced a proposed public offering of $200 million of its common shares, with an additional $30 million option for the underwriter. The company intends to use the net proceeds for general corporate purposes. J.P. Morgan Securities is the book-running manager of the offering.

Financial Analyst

Biohaven's recent announcement of a $200 million underwritten public offering, with a potential $30 million additional purchase option, is a significant capital-raising event. It adds liquidity that can expand the company's financial horizon, allowing for sustained R&D investments or potential acquisitions. However, as the offering dilutes existing shareholders, its effects may be twofold. The dilution can negatively impact the stock price in the short term due to increased supply of shares. Over the long term, if the proceeds are effectively deployed, they can enhance the value of the company, potentially offsetting the initial dilution. Investors should closely monitor the allocation of the funds for indicators of strategic direction.

Biotech Market Analyst

From a market dynamics perspective, Biohaven's move indicates a bullish stance on their ability to leverage the capital markets for growth. Considering Biohaven's focus areas in immunology, neuroscience and oncology, sectors that are R&D intensive with long development cycles, the infusion of capital is strategic. The timing of the offering will be influenced by market conditions and its reception will be a barometer of investor confidence. This is especially pertinent given the volatility of biotech stocks, where investment is often speculative and highly sensitive to both market sentiment and clinical progress.

NEW HAVEN, Conn., April 17, 2024 /PRNewswire/ -- Biohaven Ltd. (NYSE: BHVN), a biopharmaceutical company focused on the discovery, development and commercialization of life-changing treatments in key therapeutic areas, including immunology, neuroscience and oncology, today announced that it has commenced an underwritten public offering of $200 million of its common shares. All of the common shares to be sold in the offering will be offered by Biohaven. In addition, Biohaven expects to grant the underwriter a 30-day option to purchase up to an additional $30 million of common shares at the public offering price, less underwriting discounts and commissions. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering. Biohaven intends to use the net proceeds received from the offering for general corporate purposes.

J.P. Morgan Securities LLC is acting as the book-running manager of the offering.

The offering is being made only by means of a prospectus supplement and the accompanying prospectus, copies of which, when available, may be obtained from the offices of J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com.

The shares will be issued pursuant to an effective shelf registration statement on Form S-3. Before investing in the offering, interested parties should read the prospectus and related prospectus supplement for this offering, the documents incorporated by reference therein and the other documents Biohaven has filed with the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of such state or jurisdiction.

Forward-looking Statements

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The use of certain words, including "continue", "plan", "will", "believe", "may", "expect", "anticipate" and similar expressions, is intended to identify forward-looking statements. Investors are cautioned that any forward-looking statements, including statements regarding the timing, size and completion of the proposed public offering as well as the expected use of proceeds related thereto are not guarantees of future performance or results and involve substantial risks and uncertainties. Actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors including: Biohaven's ability to complete the offering of its common shares on the proposed terms, or at all, changes in market conditions, and Biohaven's expectations related to the use of proceeds from the offering of its common shares. Additional important factors to be considered in connection with forward-looking statements are described in Biohaven's filings with the Securities and Exchange Commission, including within the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". The forward-looking statements are made as of the date of this new release, and Biohaven does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:

Jennifer Porcelli
Vice-President, Investor Relations
jennifer.porcelli@biohavenpharma.com
(201) 248-0741

Media Contact:

Mike Beyer
Sam Brown Inc.
mikebeyer@sambrown.com
312-961-2502

View original content to download multimedia:https://www.prnewswire.com/news-releases/biohaven-announces-proposed-public-offering-of-common-shares-302120062.html

SOURCE Biohaven Ltd.

FAQ

What is Biohaven (BHVN) announcing?

Biohaven (NYSE: BHVN) has announced a proposed public offering of $200 million of its common shares.

How much is the underwritten public offering for?

The underwritten public offering is for $200 million of common shares, with an additional $30 million option for the underwriter.

Who is the book-running manager of the offering?

J.P. Morgan Securities is acting as the book-running manager of the offering.

What will Biohaven use the net proceeds for?

Biohaven intends to use the net proceeds received from the offering for general corporate purposes.

Where can interested parties obtain more information about the offering?

Interested parties can obtain more information about the offering from the offices of J.P. Morgan Securities , c/o Broadridge Financial Solutions, by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com.