Guardant Health Announces $90.7 Million Registered Direct Offering with Baillie Gifford
Guardant Health, Inc. (Nasdaq: GH) has entered into a common stock purchase agreement with Baillie Gifford for the sale of 3,387,446 shares of its common stock in a registered direct offering at an offering price of $26.77 per share, resulting in gross proceeds of approximately $90.7 million. The net proceeds will be used primarily for general corporate purposes, including working capital, operating expenses, and capital expenditures.
The recent transaction involving Guardant Health, Inc. and Baillie Gifford represents a significant infusion of capital into the company. The sale of 3,387,446 shares at $26.77 each translates to gross proceeds of approximately $90.7 million. This capital increase is noteworthy for investors as it provides Guardant Health with additional liquidity to support its general corporate activities, which include working capital, operating expenses and capital expenditures.
From a financial perspective, the direct offering could potentially dilute existing shareholders' equity, but it also indicates strong investor confidence, particularly from a reputable investment management firm like Baillie Gifford. The decision to invest in Guardant Health underscores a positive outlook on the company's growth potential and its product pipeline within the precision oncology space.
It is important for stakeholders to monitor how the company allocates the net proceeds, as effective use of the funds could enhance its competitive position and accelerate its growth trajectory, which may, in turn, impact its stock performance positively in the long run.
Guardant Health's strategic move to secure funding through a registered direct offering has implications for its operational capabilities in the precision oncology field. The company's emphasis on impacting patient outcomes through its products suggests that the additional funds may be channeled towards research and development of new diagnostics or therapies, or the expansion of its current product portfolio.
Investors and industry observers should consider the potential for Guardant Health to leverage this capital to strengthen its market position. Advancements in precision oncology can be transformative for patient care and successful development and commercialization of innovative products can lead to substantial returns on investment. However, the inherent risks of clinical and regulatory hurdles remain a factor to be cautiously evaluated.
The precision oncology sector is rapidly evolving, with significant advancements in personalized medicine driving demand for innovative diagnostic tools and treatments. Guardant Health's capital raise through the stock purchase agreement with Baillie Gifford is a strategic maneuver to bolster its financial standing in this competitive landscape.
By analyzing the broader industry context, it is evident that Guardant Health is positioning itself to take advantage of growth opportunities in the precision oncology market. The financial backing from a long-term investor like Baillie Gifford provides not only capital but also a vote of confidence in Guardant's strategic direction and execution capabilities.
As the industry continues to grow, Guardant Health's ability to scale operations and invest in new technologies could prove pivotal in gaining market share and establishing a leadership position. Observers should track the company's performance indicators post-capital infusion to assess the effectiveness of their growth strategies.
12/21/2023 - 09:00 AM
PALO ALTO, Calif. --(BUSINESS WIRE)--
Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company, today announced that it has entered into a common stock purchase agreement with Baillie Gifford on behalf of accounts that it manages for the sale of 3,387,446 shares of its common stock in a registered direct offering at an offering price of $26.77
Gross proceeds are approximately $90.7 million
"We are proud to be supported by Baillie Gifford,” said Helmy Eltoukhy, co-founder and co-CEO of Guardant Health. “At Guardant, we are driven by the impact our products have on patient outcomes each and every day, and look forward to Baillie Gifford’s continued support as we work to serve many more patients with our growing product portfolio.”
“We have deep conviction in Guardant’s ability to execute on the opportunity ahead,” said Brogan Harris at Baillie Gifford. “We look forward to a long-term partnership with Guardant’s team, as they work to continue to improve outcomes and transform patient lives across the continuum of care.”
The shares of common stock are being offered by Guardant Health pursuant to an automatic shelf registration statement on Form S-3 that was previously filed with the U.S. Securities and Exchange Commission, or the SEC, and automatically became effective upon filing. A final prospectus supplement and accompanying prospectus relating to and describing the terms of the offering will be filed with the SEC and is available on the SEC’s website at www.sec.gov .
Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained when available, on the SEC’s website at http://www.sec.gov or by contacting Guardant Investor Relations, 3100 Hanover Street, Palo Alto, California 94304, by email: investors@guardanthealth.com or by telephone: (657) 254-5417.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities described herein, 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 the registration or qualification under the securities laws of any such state or jurisdiction.
About Guardant Health
Guardant Health is a leading precision medicine company focused on guarding wellness and giving every person more time free from cancer. Founded in 2012, Guardant is transforming patient care by providing critical insights into what drives disease through its advanced blood and tissue tests, real-world data and AI analytics. Guardant tests help improve outcomes across all stages of care, including screening to find cancer early, monitoring for recurrence in early-stage cancer, and helping doctors select the best treatment for patients with advanced cancer. For more information, visit guardanthealth.com and follow the company on LinkedIn , X (Twitter) and Facebook .
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements relating to Guardant Health’s future results, reaching more patients with a growing product portfolio, or regarding the potential benefits and advantages of Guardant Health’s platforms, assays and tests, which involve risks and uncertainties that could cause Guardant Health’s actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions, and actual outcomes and results could differ materially from these statements due to a number of factors. These and additional risks and uncertainties that could affect Guardant Health’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the year ended December 31, 2022, and any current and periodic reports filed with or furnished to the Securities and Exchange Commission thereafter. The forward-looking statements in this press release are based on information available to Guardant Health as of the date hereof, and Guardant Health disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Guardant Health’s views as of any date subsequent to the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231221301429/en/
Investor Contact:
investors@guardanthealth.com
Media Contact:
press@guardanthealth.com
Source: Guardant Health, Inc.
What is the stock purchase agreement between Guardant Health and Baillie Gifford?
Guardant Health has entered into a stock purchase agreement with Baillie Gifford for the sale of 3,387,446 shares of its common stock in a registered direct offering at an offering price of $26.77 per share.
What are the net proceeds from the offering intended for?
The net proceeds from the offering will be primarily used for general corporate purposes, including working capital, operating expenses, and capital expenditures.
Where can I find more information about the offering?
More information about the offering can be found on the SEC’s website at www.sec.gov or by contacting Guardant Investor Relations at 3100 Hanover Street, Palo Alto, California 94304, by email: investors@guardanthealth.com or by telephone: (657) 254-5417.
