Monte Rosa Therapeutics Announces Pricing of $100 Million Underwritten Public Offering

Rhea-AI Summary

Monte Rosa Therapeutics (Nasdaq: GLUE), a clinical-stage biotech company, announced the pricing of a $100 million underwritten public offering. The offering includes 10,638,476 shares of common stock at $4.70 per share and pre-funded warrants for 10,638,524 shares at $4.6999 per warrant. The offering's gross proceeds are expected to be approximately $100 million. The transaction, led by Dimension and a life-sciences focused institutional investor, is set to close on or about May 20, 2024, pending customary conditions. TD Cowen and Wedbush PacGrow are the joint book-running managers. This offering uses a shelf registration statement filed with the SEC in July 2022.

Positive

• Monte Rosa Therapeutics expects gross proceeds of approximately $100 million from the offering.
• The offering includes major participation from Dimension and a life-sciences focused institutional investor.
• The offering is expected to close swiftly by May 20, 2024, pending conditions.

Negative

• The public offering may lead to shareholder dilution due to the issuance of 10,638,476 shares and 10,638,524 pre-funded warrants.
• There are underwriting discounts, commissions, and offering expenses that will reduce the net proceeds.
• The offering price is relatively low at $4.70 per share, potentially reflecting market valuation concerns.

BOSTON, May 16, 2024 (GLOBE NEWSWIRE) -- Monte Rosa Therapeutics, Inc. (“Monte Rosa”) (Nasdaq: GLUE), a clinical-stage biotechnology company developing novel molecular glue degrader (MGD)-based medicines, today announced the pricing of an underwritten public offering of 10,638,476 shares of its common stock at a public offering price of $4.70 per share and, in lieu of common stock to certain investors, pre-funded warrants to purchase 10,638,524 shares of common stock at a public offering price of $4.6999 per pre-funded warrant, which represents the per share public offering price of each share of common stock less the $0.0001 per share exercise price for each pre-funded warrant. The gross proceeds to Monte Rosa from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be approximately $100 million. All of the shares and pre-funded warrants in the offering are to be sold by Monte Rosa. The offering is expected to close on or about May 20, 2024, subject to satisfaction of customary closing conditions.

The financing was led by Dimension and a life-sciences focused institutional investor, with participation from other new and existing investors.

TD Cowen and Wedbush PacGrow are acting as joint book-running managers for the offering.

The shares and pre-funded warrants are being offered by Monte Rosa pursuant to an effective shelf registration statement that was previously filed with the U.S. Securities and Exchange Commission (SEC) on July 1, 2022 and declared effective by the SEC on July 13, 2022 (File No. 333-266003). The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement relating to and describing the terms of the offering has been filed with the SEC and is available on the SEC’s website at www.sec.gov.

The final prospectus supplement relating to and describing the final terms of the offering will be filed with the SEC and may be obtained, when available, from TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (855) 495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com or Wedbush Securities Inc., Attn: ECM Department, 600 Montgomery Street, 29th Floor, San Francisco, CA 94111 or via email at ecm@wedbush.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 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 Monte Rosa
Monte Rosa Therapeutics is a clinical-stage biotechnology company developing highly selective molecular glue degrader (MGD) medicines for patients living with serious diseases in the areas of oncology, autoimmune and inflammatory diseases, and more. MGDs are small molecule protein degraders that have the potential to treat many diseases that other modalities, including other degraders, cannot. Monte Rosa’s QuEEN™ (Quantitative and Engineered Elimination of Neosubstrates) discovery engine combines AI-guided chemistry, diverse chemical libraries, structural biology, and proteomics to identify degradable protein targets and rationally design MGDs with unprecedented selectivity. The QuEEN discovery engine enables access to a wide-ranging and differentiated target space of well-validated biology across multiple therapeutic areas. Monte Rosa has developed the industry’s leading pipeline of MGDs, which spans oncology, autoimmune and inflammatory disease and beyond, and has a strategic collaboration with Roche to discover and develop MGDs against targets in cancer and neurological diseases previously considered impossible to drug.

Forward-Looking Statements
This press release includes express and implied “forward-looking statements,” including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, implied and express statements about Monte Rosa’s expectations regarding the timing and closing of the public offering, including the satisfaction of customary closing conditions related to the offering. Forward-looking statements include all statements that are not historical facts and in some cases, can be identified by terms such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “objective,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “ongoing,” or the negative of these terms, or other comparable terminology intended to identify statements about the future.

Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward- looking statements contained in this press release, including, without limitation, uncertainties related to market conditions and satisfaction of customary closing conditions related to the public offering. These and the risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Monte Rosa’s most recent Annual Report on Form 10-K, as well as any subsequent filings with the SEC. In addition, any forward- looking statements represent Monte Rosa’s views only as of as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Monte Rosa explicitly disclaims any obligation to update any forward-looking statements subject to any obligations under applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Investors
Andrew Funderburk
ir@monterosatx.com

Media
Cory Tromblee, Scient PR
media@monterosatx.com

FAQ

What is the stock symbol for Monte Rosa Therapeutics?

The stock symbol for Monte Rosa Therapeutics is GLUE.

How much is Monte Rosa Therapeutics raising in its public offering?

Monte Rosa Therapeutics is raising approximately $100 million in its public offering.

What is the offering price for Monte Rosa Therapeutics' shares?

The offering price for Monte Rosa Therapeutics' shares is $4.70 per share.

When is Monte Rosa Therapeutics' offering expected to close?

The offering is expected to close on or about May 20, 2024, subject to customary closing conditions.

Who are the joint book-running managers for Monte Rosa Therapeutics' offering?

TD Cowen and Wedbush PacGrow are acting as joint book-running managers for the offering.

What are pre-funded warrants in Monte Rosa Therapeutics' offering?

Pre-funded warrants allow investors to purchase shares at a nominal price of $0.0001 per share, with a pre-funding price of $4.6999 per warrant.