Fractyl Health Announces Pricing of $20 Million Underwritten Public Offering
Fractyl Health (NASDAQ:GUTS), a metabolic therapeutics company focused on treating obesity and type 2 diabetes, has announced the pricing of a $20 million underwritten public offering. The offering consists of 19,047,619 shares of common stock at $1.05 per share, accompanied by Tranche A (2-year) and Tranche B (5-year) warrants.
Each share comes with two warrants exercisable at $1.05 per share. The Tranche A warrants are callable based on REMAIN-1 study data and specific trading conditions. If all warrants are exercised, the company could receive up to $40 million in additional proceeds. The funds will support Revita and Rejuva pipeline programs and working capital needs.
Fractyl Health (NASDAQ:GUTS), un'azienda di terapie metaboliche specializzata nel trattamento dell'obesità e del diabete di tipo 2, ha annunciato il prezzo di un'offerta pubblica sottoscritta da 20 milioni di dollari. L'offerta comprende 19.047.619 azioni ordinarie a 1,05 dollari per azione, accompagnate da warrant Tranche A (2 anni) e Tranche B (5 anni).
Ogni azione è accompagnata da due warrant esercitabili a 1,05 dollari per azione. I warrant Tranche A sono richiamabili in base ai dati dello studio REMAIN-1 e a specifiche condizioni di mercato. Se tutti i warrant verranno esercitati, la società potrebbe ottenere fino a 40 milioni di dollari di proventi aggiuntivi. I fondi saranno destinati a supportare i programmi pipeline Revita e Rejuva e le necessità di capitale operativo.
Fractyl Health (NASDAQ:GUTS), una empresa de terapias metabólicas enfocada en el tratamiento de la obesidad y la diabetes tipo 2, ha anunciado el precio de una oferta pública suscrita de 20 millones de dólares. La oferta consiste en 19,047,619 acciones ordinarias a 1.05 dólares por acción, acompañadas de warrants Tramo A (2 años) y Tramo B (5 años).
Cada acción incluye dos warrants ejercitables a 1.05 dólares por acción. Los warrants del Tramo A son rescatables según los datos del estudio REMAIN-1 y ciertas condiciones del mercado. Si se ejercen todos los warrants, la compañía podría recibir hasta 40 millones de dólares adicionales. Los fondos apoyarán los programas de las líneas Revita y Rejuva, así como las necesidades de capital de trabajo.
Fractyl Health (NASDAQ:GUTS)는 비만과 제2형 당뇨병 치료에 중점을 둔 대사 치료 회사로, 2,000만 달러 규모의 인수 공모 가격을 발표했습니다. 이번 공모는 19,047,619주의 보통주를 주당 1.05달러에 제공하며, 2년 만기 Tranche A 워런트와 5년 만기 Tranche B 워런트가 함께 포함됩니다.
각 주식에는 주당 1.05달러에 행사할 수 있는 두 개의 워런트가 부여됩니다. Tranche A 워런트는 REMAIN-1 연구 데이터와 특정 거래 조건에 따라 콜 가능하며, 모든 워런트가 행사되면 회사는 최대 4,000만 달러의 추가 자금을 확보할 수 있습니다. 자금은 Revita 및 Rejuva 파이프라인 프로그램과 운전자본 필요에 사용될 예정입니다.
Fractyl Health (NASDAQ:GUTS), une société de thérapies métaboliques spécialisée dans le traitement de l’obésité et du diabète de type 2, a annoncé le prix d’une offre publique souscrite de 20 millions de dollars. L’offre comprend 19 047 619 actions ordinaires à 1,05 dollar par action, accompagnées de warrants Tranche A (2 ans) et Tranche B (5 ans).
Chaque action est assortie de deux warrants exerçables à 1,05 dollar par action. Les warrants Tranche A sont rappelables en fonction des données de l’étude REMAIN-1 et de certaines conditions de marché. Si tous les warrants sont exercés, la société pourrait recevoir jusqu’à 40 millions de dollars de produits supplémentaires. Les fonds soutiendront les programmes de pipeline Revita et Rejuva ainsi que les besoins en fonds de roulement.
Fractyl Health (NASDAQ:GUTS), ein Unternehmen für metabolische Therapien, das sich auf die Behandlung von Fettleibigkeit und Typ-2-Diabetes spezialisiert hat, hat die Preisfestsetzung eines öffentlichen Angebots mit Unterzeichnung in Höhe von 20 Millionen US-Dollar bekannt gegeben. Das Angebot umfasst 19.047.619 Stammaktien zu je 1,05 US-Dollar, begleitet von Tranche A (2 Jahre) und Tranche B (5 Jahre) Warrants.
Jede Aktie ist mit zwei Warrants verbunden, die zu 1,05 US-Dollar pro Aktie ausgeübt werden können. Die Tranche A Warrants sind basierend auf Daten der REMAIN-1-Studie und bestimmten Handelsbedingungen kündbar. Wenn alle Warrants ausgeübt werden, könnte das Unternehmen bis zu 40 Millionen US-Dollar zusätzliche Erlöse erzielen. Die Mittel werden zur Unterstützung der Revita- und Rejuva-Pipeline-Programme sowie zur Deckung des Betriebskapitals verwendet.
- Potential for additional $40 million in proceeds if warrants are fully exercised
- Fixed-price warrants with no variable pricing or anti-dilution mechanisms
- Funds will support development of key pipeline programs Revita and Rejuva
- Significant dilution for existing shareholders with 19,047,619 new shares being issued
- Low offering price of $1.05 per share indicates challenging market conditions
- Additional dilution possible if underwriters exercise their 30-day option for extra shares
Insights
Fractyl raises $20M in dilutive public offering with potential for additional $40M through warrants to fund metabolic disease pipeline.
Fractyl Health has priced a
The offering's structure reveals several strategic elements. The callable feature on Tranche A warrants, triggered by positive clinical data from the REMAIN-1 study, creates an incentive mechanism tied to clinical success. The warrant exercise threshold of
For investors, this offering represents substantial dilution at a challenging time, as the
The capital allocation strategy focuses on advancing both the Revita and Rejuva pipeline programs targeting obesity and type 2 diabetes - major market opportunities with significant commercial potential if clinical development succeeds. With Ladenburg Thalmann as book-runner, this transaction demonstrates continued institutional support despite what appears to be challenging market conditions requiring creative financing structures.
BURLINGTON, Mass., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Fractyl Health, Inc. (Nasdaq: GUTS) (the “Company” or “Fractyl”), a metabolic therapeutics company pioneering pattern-breaking approaches that treat root causes of obesity and type 2 diabetes (“T2D”), today announced the pricing of its underwritten public offering of 19,047,619 shares of common stock and accompanying Tranche A and Tranche B warrants, for gross proceeds of
Each share of common stock is being sold together with (a) one Tranche A warrant with a 2-year term; and (b) one Tranche B warrant with a 5-year term, exercisable following stockholder approval pursuant to Nasdaq rules; at a combined public offering price of
The Tranche A warrants are callable at the Company’s option following the release of 3-month randomized midpoint clinical data from the ongoing REMAIN-1 study, subject to satisfaction of certain conditions including that the average trading price of the stock exceeds
In addition, Fractyl granted the underwriters a 30-day option to purchase up to an additional 2,857,142 shares of common stock, along with associated Tranche A and Tranche B Warrants, at the public offering price, less underwriting discounts and commissions.
Fractyl expects to receive gross proceeds of approximately
Ladenburg Thalmann & Co. Inc. is acting as book-running manager for the offering.
This offering is expected to close on or about August 7, 2025, subject to the satisfaction of customary closing conditions.
A shelf registration statement on Form S-3 relating to the securities being sold in this offering was filed with the Securities and Exchange Commission (the “SEC”) on March 3, 2025 and declared effective on March 18, 2025. A prospectus supplement and accompanying base prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov, copies of which may be obtained, when available, from Ladenburg Thalmann & Co. Inc., Attn: Prospectus Department, 640 Fifth Avenue, 4th Floor, New York, NY 10019 or by e-mail at prospectus@ladenburg.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Fractyl, nor will there be any sale of any 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, province, territory or other jurisdiction.
About Fractyl
Fractyl is a metabolic therapeutics company focused on pioneering new approaches to the treatment of metabolic diseases, including obesity and T2D. Despite advances in treatment over the last 50 years, obesity and T2D continue to be rapidly growing drivers of morbidity and mortality in the 21st century. Fractyl’s goal is to transform metabolic disease treatment from chronic symptomatic management to durable disease-modifying therapies that target the organ-level root causes of disease. The Company has a robust and growing IP portfolio, with 32 granted U.S. patents and approximately 40 pending U.S. applications, along with numerous foreign issued patents and pending applications. Fractyl is based in Burlington, MA.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the timing, size, terms and completion of the proposed public offering, the anticipated use of proceeds therefrom, the grant of the option to purchase additional shares as well as our anticipated financial performance, including cash and cash equivalents, for any period of time, the promise and potential impact of our preclinical or clinical trial data, the design, initiation, timing and results of clinical enrollment and any clinical studies or readouts, the content, information used for, timing or results of any Investigational New Drug (IND)-enabling studies, IND applications or Clinical Trial Applications, communications with regulators, the potential launch or commercialization of any of our product candidates or products, the potential treatment population or benefits for any of our product candidates or products, and our strategic and product development objectives and goals, including with respect to enabling long-term control over obesity and type 2 diabetes without the burden of chronic therapies, redefining the future of metabolic disease treatment, positioning our Company at the forefront of the global opportunity for metabolic care, and the timing of any of the foregoing. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the Company’s limited operating history; the incurrence of significant net losses and the fact that the Company expects to continue to incur significant net losses for the foreseeable future; the Company’s need for substantial additional financing; the Company’s ability to continue as a going concern; the restrictive and financial covenants in the Company’s credit agreement; the lengthy and unpredictable regulatory approval process for the Company’s product candidates; uncertainty regarding its clinical studies; the fact that the Company’s product candidates may cause serious adverse events or undesirable side effects or have other properties that may cause it to suspend or discontinue clinical studies, delay or prevent regulatory development, prevent their regulatory approval, limit the commercial profile, or result in significant negative consequences; additional time may be required to develop and obtain regulatory approval or certification for the Company’s Rejuva gene therapy candidates; the Company’s reliance on third parties to conduct certain aspects of the Company’s preclinical studies and clinical studies; the Company’s reliance on third parties for the manufacture of sub-assembly components for Revita and for the materials for its Rejuva gene therapy platform for preclinical studies, and its ongoing clinical studies; the regulatory approval process of the FDA, comparable foreign regulatory authorities and lengthy, time-consuming and inherently unpredictable, and even if we complete the necessary clinical studies, we cannot predict when, or if, we will obtain regulatory approval or certification for any of our product candidates, and any such regulatory approval or certification may be for a more narrow indication than we seek; and the potential launch or commercialization of any of Company’s product candidates or products and our strategic and product development objectives and goals, and the other factors discussed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”) on May 13, 2025 and in our other filings with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release, and Fractyl assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise after the date of this press release, except as required under applicable law.
Contact for Investors & Media
Media Contact
Jessica Cotrone, Head of Corporate Communications
jcotrone@fractyl.com, 978.760.5622
Investor Contact
Brian Luque, Head of Investor Relations and Corporate Development
IR@fractyl.com, 951.206.1200
FAQ
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