Galecto Announces Pricing of $275 Million Underwritten Public Offering

Rhea-AI Summary

Galecto (NASDAQ: GLTO) priced an underwritten public offering of 14,473,685 common shares at $19.00 per share, with gross proceeds expected to be approximately $275 million before fees and expenses. The underwriters have a 30-day option to purchase an additional 2,171,052 shares. The offering is expected to close on or about February 12, 2026, subject to customary closing conditions, and is being conducted from an automatically effective shelf registration.

Positive

• Gross proceeds expected to be approximately $275 million
• Underwriters granted a 30-day option for 2,171,052 additional shares
• Offering expected to close on or about February 12, 2026

Negative

• Issuance of 14,473,685 shares will dilute existing shareholders
• Gross proceeds reduced by underwriting discounts, commissions, and expenses
• Total shares could rise to 16,644,737 if underwriter option exercised

Key Figures

Offering share count: 14,473,685 shares Offering price: $19.00 per share Gross proceeds: $275 million +5 more

8 metrics

Offering share count 14,473,685 shares Common stock sold in underwritten public offering

Offering price $19.00 per share Public offering price for new common shares

Gross proceeds $275 million Expected gross proceeds before fees, excluding underwriter option

Underwriter option 2,171,052 shares 30-day option to purchase additional common stock

Pre-offering price move -10.33% GLTO 24h price change to <b>$21.52</b> before news timestamp

Common shares outstanding 43.6 million shares Outstanding as of Feb 9, 2026 after Series C conversion (8-K)

November PIPE $285 million Private placement raised in November 2025 providing runway into 2029

52-week range $2.01–$38.33 GLTO 52-week low and high prior to this offering

Market Reality Check

Price: $21.52 Vol: Volume 51,119 vs 20-day a...

normal vol

$21.52 Last Close

Volume Volume 51,119 vs 20-day average 34,733 (relative volume 1.47x) shows elevated trading ahead of the offering. normal

Technical At $21.52, GLTO trades above its $10.61 200-day MA, despite a -10.33% one-day decline.

Peers on Argus

GLTO fell 10.33% while momentum peers AZTR and XRTX were up 4.48% and , respecti...

2 Up

GLTO fell 10.33% while momentum peers AZTR and XRTX were up 4.48% and , respectively, indicating stock-specific pressure from the equity offering rather than a broad biotech move.

Historical Context

5 past events · Latest: Jan 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 12	Strategic update	Positive	+6.4%	Outlined 2026 priorities and milestones with funded runway from prior PIPE.
Jan 06	Leadership hires	Positive	+2.7%	Added COO and CMO while confirming timelines and cash runway into 2029.
Dec 16	Inducement grant	Neutral	-5.1%	Equity inducement option grant to new employee under inducement plan.
Nov 10	Acquisition & financing	Positive	+248.5%	Closed Damora acquisition and ~$284.9M private placement to fund pipeline.
Nov 06	Earnings update	Neutral	-2.0%	Reported Q3 2025 results with pre-IND FDA feedback on GB3226.

Pattern Detected

Recent news has generally seen price moves aligned with the fundamental tone, with strong positive reactions to financing and strategic milestones.

Recent Company History

Over the last few months, Galecto has executed a strategic shift into hematologic cancers supported by substantial financings. The Damora acquisition and related private placement in November 2025 drove a 248.48% move, while a later strategic and milestones update on Jan 12, 2026 saw a 6.44% gain. Leadership additions and clear IND timelines in early 2026 also had positive impact. More routine items like inducement grants and quarterly results produced modest declines. Today’s underwritten public offering fits into this broader capital-raising and pipeline-expansion trajectory.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2026-02-10

An effective Form S-3ASR filed on Feb 10, 2026 gives Galecto the flexibility to issue common stock, preferred stock, debt, warrants and units via prospectus supplements. The current underwritten offering, reflected in a 424B5 filed the same day, represents one usage of this shelf and demonstrates the company’s ability to access capital markets as needed.

Market Pulse Summary

This announcement details a sizeable underwritten public offering of 14,473,685 shares at $19.00, fo...

Analysis

This announcement details a sizeable underwritten public offering of 14,473,685 shares at $19.00, for expected gross proceeds of $275 million, plus a 2,171,052-share underwriter option. It follows a large $285M private placement and sits under an automatically effective Form S-3ASR, highlighting Galecto’s active use of capital markets to fund its hematologic oncology pipeline. Investors may track future shelf takedowns, share-count changes, and subsequent clinical milestones to assess the evolving risk–reward profile.

Key Terms

underwritten public offering, shelf registration statement, prospectus supplement, registration statement

4 terms

underwritten public offering financial

"announced the pricing of its previously announced underwritten public offering of shares"

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

shelf registration statement regulatory

"An automatically effective shelf registration statement relating to these securities was filed"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

prospectus supplement regulatory

"by means of a written prospectus, including a prospectus supplement, forming a part of an effective registration"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

registration statement regulatory

"forming a part of an effective registration statement. A preliminary prospectus supplement"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

AI-generated analysis. Not financial advice.

BOSTON, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Galecto, Inc. (NASDAQ: GLTO), a biopharmaceutical company focused on developing novel therapeutics to redefine the treatment paradigm for people living with blood cancers, today announced the pricing of its previously announced underwritten public offering of shares of its common stock. Galecto is selling a total of 14,473,685 shares of common stock at a public offering price of $19.00 per share. In addition, Galecto has granted the underwriters a 30-day option to purchase an additional 2,171,052 shares of common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds to Galecto from the offering are expected to be approximately $275 million, before deducting underwriting discounts and commissions and offering expenses payable by Galecto and assuming no exercise of the underwriters’ option to purchase additional shares.

All of the securities are being offered by Galecto. The offering is expected to close on or about February 12, 2026, subject to customary closing conditions.

Jefferies, Leerink Partners, Evercore ISI and Guggenheim Securities are acting as joint book-running managers for the offering.

An automatically effective shelf registration statement relating to these securities was filed with the Securities and Exchange Commission (SEC) on February 10, 2026. This offering is being made only by means of a written prospectus, including a prospectus supplement, forming a part of an effective registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s website, located at www.sec.gov. A copy of the final prospectus supplement and the 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 and, when available, may be obtained from: Jefferies LLC (Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022; telephone: 877-821-7388; or email: Prospectus_Department@Jefferies.com); Leerink Partners LLC (Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, Massachusetts 02109; telephone: 800-808-7425 ext. 6105; or email: syndicate@leerink.com); Evercore Group L.L.C. (Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055; telephone: 888-474-0200; or email: ecm.prospectus@evercore.com); or Guggenheim Securities, LLC (Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, New York 10017; telephone: 212-518-9544; or email: GSEquityProspectusDelivery@guggenheimpartners.com).

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities 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.

About Galecto, Inc.

Galecto, Inc. is a clinical-stage biotechnology company advancing a pipeline of antibody therapeutics to transform treatment of a broad spectrum of hematological cancers. Galecto’s pipeline includes a highly differentiated mutant calreticulin (mut-CALR)-driven myeloproliferative neoplasm portfolio targeting essential thrombocythemia and myelofibrosis. Galecto’s pipeline also includes GB3226, a first-in-class preclinical dual inhibitor of ENL-YEATS and FLT3 for the treatment of multiple genetic subsets of acute myeloid leukemia.

Forward-Looking Statements

Certain statements in this press release, other than purely historical information, may constitute “forward-looking statements” within the meaning of the federal securities laws, including for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding Galecto’s expectations regarding the consummation of the offering; the satisfaction of customary closing conditions with respect to the offering; and express or implied statements relating to the Company’s expectations, hopes, beliefs, intentions or strategies regarding the future of its assets, pipeline and business. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting the Company will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the satisfaction of customary closing conditions related to the underwritten public offering and those uncertainties and factors described under the headings “Risk Factors,” “Cautionary Information Regarding Forward-Looking Statements” or “Cautionary Note Regarding Forward-Looking Statements” in the Company’s most recent filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth therein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this press release, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. The Company does not undertake or accept any duty to make any updates or revisions to any forward-looking statements.

Media Contact:
Lia Dangelico
Deerfield Group
lia.dangelico@deerfieldgroup.com

Investor Contact:
Brian Ritchie
LifeSci Advisors
britchie@lifesciadvisors.com

FAQ

What did Galecto (GLTO) announce on February 11, 2026 about a public offering?

Galecto announced an underwritten public offering of common stock priced at $19.00 per share. According to Galecto, the company is selling 14,473,685 shares with a 30-day option for an additional 2,171,052 shares, subject to customary closing conditions.

How much gross capital will Galecto (GLTO) raise from the offering?

The offering is expected to generate approximately $275 million in gross proceeds before fees and expenses. According to Galecto, that figure assumes no exercise of the underwriters' option to purchase additional shares.

When is the Galecto (GLTO) offering expected to close and who are the book-runners?

The offering is expected to close on or about February 12, 2026, subject to customary closing conditions. According to Galecto, Jefferies, Leerink Partners, Evercore ISI and Guggenheim Securities are joint book-running managers.

How many additional shares can underwriters purchase for Galecto (GLTO) and at what price?

Underwriters have a 30-day option to purchase an additional 2,171,052 shares at the public offering price, less underwriting discounts and commissions. According to Galecto, the option allows potential expansion of the offering within 30 days.

Where can investors find the Galecto (GLTO) prospectus and offering documents?

The prospectus supplement and accompanying prospectus are available on the SEC website at www.sec.gov. According to Galecto, final documents will be filed with the SEC and may be obtained from the listed underwriters when available.