Lineage Cell Therapeutics Announces First Closing of up to $66 Million Registered Direct Offering
Lineage Cell Therapeutics (LCTX) announced the first closing of a registered direct offering of up to $66 million. The company issued 31,578,951 common shares and warrants at $0.76 per share to healthcare-focused institutional investors, receiving $24 million in gross proceeds. An additional $6 million is expected from Broadwood Partners pending shareholder approval. The warrants, exercisable at $0.91 per share, could provide up to $36 million in additional proceeds if fully exercised. The funds will be used for working capital, research and development, and capital expenditures.
Lineage Cell Therapeutics (LCTX) ha annunciato la prima chiusura di un'offerta diretta registrata fino a 66 milioni di dollari. L'azienda ha emesso 31.578.951 azioni ordinarie e warrant a 0,76 dollari per azione a favore di investitori istituzionali focalizzati sulla sanità, ricevendo 24 milioni di dollari in proventi lordi. Ulteriori 6 milioni di dollari sono attesi da Broadwood Partners in attesa dell'approvazione degli azionisti. I warrant, esercitabili a 0,91 dollari per azione, potrebbero generare fino a 36 milioni di dollari in ulteriori proventi se completamente esercitati. I fondi saranno utilizzati per il capitale circolante, la ricerca e sviluppo e le spese in conto capitale.
Lineage Cell Therapeutics (LCTX) anunció el primer cierre de una oferta directa registrada de hasta 66 millones de dólares. La compañía emitió 31,578,951 acciones comunes y garantías a 0.76 dólares por acción a inversores institucionales enfocados en el sector salud, recibiendo 24 millones de dólares en ingresos brutos. Se espera que 6 millones adicionales provengan de Broadwood Partners, sujeto a la aprobación de los accionistas. Las garantías, ejercitables a 0.91 dólares por acción, podrían proporcionar hasta 36 millones de dólares en ingresos adicionales si se ejercen en su totalidad. Los fondos se utilizarán para capital de trabajo, investigación y desarrollo, y gastos de capital.
라인이지 셀 테라퓨틱스 (LCTX)가 최대 6,600만 달러의 등록된 직접 제공의 첫 번째 마감 소식을 발표했습니다. 이 회사는 의료 분야에 집중한 기관 투자자들에게 주당 0.76달러로 31,578,951주와 워런트를 발행하여 2천4백만 달러의 총 매출을 올렸습니다. 주주 승인에 따라 Broadwood Partners로부터 추가로 600만 달러가 예상됩니다. 주당 0.91달러에 행사 가능한 워런트는 완전히 행사될 경우 최대 3,600만 달러의 추가 수익을 제공할 수 있습니다. 이러한 자금은 운영 자본, 연구 개발 및 자본 지출에 사용될 예정입니다.
Lineage Cell Therapeutics (LCTX) a annoncé la première clôture d'une offre directe enregistrée pouvant atteindre 66 millions de dollars. La société a émis 31 578 951 actions ordinaires et bons de souscription à 0,76 dollar par action à des investisseurs institutionnels axés sur la santé, recevant 24 millions de dollars de produits bruts. Un montant supplémentaire de 6 millions de dollars est attendu de Broadwood Partners sous réserve de l'approbation des actionnaires. Les bons de souscription, exerçables à 0,91 dollar par action, pourraient générer jusqu'à 36 millions de dollars de produits supplémentaires s'ils sont entièrement exercés. Les fonds seront utilisés pour le capital de travail, la recherche et le développement, ainsi que les dépenses d'investissement.
Lineage Cell Therapeutics (LCTX) hat den ersten Abschluss eines registrierten Direktangebots von bis zu 66 Millionen USD bekannt gegeben. Das Unternehmen hat 31.578.951 Stammaktien und Warrants zu einem Preis von 0,76 USD pro Aktie an institutionelle Investoren im Gesundheitssektor ausgegeben und dabei 24 Millionen USD Bruttoerlöse erhalten. Weitere 6 Millionen USD werden von Broadwood Partners erwartet, vorbehaltlich der Genehmigung der Aktionäre. Die Warrants, die zu einem Preis von 0,91 USD pro Aktie ausgeübt werden können, könnten bei vollständiger Ausübung bis zu 36 Millionen USD zusätzliche Erträge generieren. Die Mittel werden für Betriebskapital, Forschung und Entwicklung sowie Investitionsausgaben verwendet.
- Secured $24 million in immediate gross proceeds
- Potential for additional $36 million through warrant exercises
- Additional $6 million expected from Broadwood Partners
- Share dilution through issuance of 31.6 million new shares
- Offering price of $0.76 per share may represent a discount to market price
- Additional shareholder approval required for Broadwood investment
Insights
This
The deal structure, involving healthcare-focused institutional investors and existing shareholder Broadwood Partners, demonstrates strong investor confidence. The
The warrant exercise trigger linked to OpRegen's advancement into Phase 2/3 trials is particularly noteworthy. This milestone-based structure aligns additional funding with clinical progress, indicating confidence in the OpRegen program's potential. The requirement for a control arm in the future trial suggests a robust study design that could support regulatory approval.
The six-month exercise delay and three-year expiration window provide a balanced timeline for clinical development while maintaining financing flexibility. This structure incentivizes both the company and investors to advance the clinical program efficiently, potentially accelerating the development timeline for their lead asset.
H.C. Wainwright & Co. served as the exclusive placement agent for the offering.
The offering of the securities to Broadwood Partners, L.P. (“Broadwood”), an affiliate of Neal Bradsher, a member of Lineage’s board of directors, is expected to close upon obtaining shareholder approval to satisfy applicable NYSE American rules and to the satisfaction of customary closing conditions. The common warrants that may be issued to Broadwood pursuant to the definitive purchase agreement entered into between Lineage and Broadwood will not be exercisable until the later of (i) their date of issuance, which will be the date shareholder approval is obtained, and (ii) the six-month anniversary of the date of issuance of the common warrants to the unaffiliated institutional investors in the offering.
Lineage received
The securities described above were offered and sold by Lineage in a registered direct offering pursuant to a “shelf” registration statement on Form S-3 (File No. 333-277758) filed with the Securities and Exchange Commission (the “SEC”) on March 7, 2024, and which was declared effective by the SEC on May 14, 2024. The offering of the securities in the registered direct offering was made only by means of a base prospectus and a prospectus supplement that forms a part of the effective registration statement. A final prospectus supplement and the accompanying base prospectus relating to the offering were filed with the SEC and are available on the SEC’s website at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying base prospectus may also be obtained from H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor,
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, 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 Lineage Cell Therapeutics, Inc.
Lineage Cell Therapeutics is a clinical-stage biotechnology company developing novel, “off-the-shelf,” cell therapies to address unmet medical needs. Lineage’s programs are based on its proprietary cell-based technology platform and associated development and manufacturing capabilities. From this platform, Lineage designs, develops, manufactures, and tests specialized human cells with anatomical and physiological functions similar or identical to cells found naturally in the human body. These cells are created by applying directed differentiation protocols to established, well-characterized, and self-renewing pluripotent cell lines. These protocols generate cells with characteristics associated with specific and desired developmental lineages. Cells derived from such lineages are transplanted into patients in an effort to replace or support cells that are absent or dysfunctional due to degenerative disease, aging, or traumatic injury, and to restore or augment the patient’s functional activity. Lineage’s neuroscience focused pipeline currently includes: (i) OpRegen, a retinal pigment epithelial cell therapy in Phase 2a development under a worldwide collaboration with Roche and Genentech, a member of the Roche Group, for the treatment of geographic atrophy secondary to age-related macular degeneration; (ii) OPC1, an oligodendrocyte progenitor cell therapy in Phase 1/2a development for the treatment of spinal cord injuries; (iii) ReSonance™ (ANP1), an auditory neuronal progenitor cell therapy for the potential treatment of auditory neuropathy; (iv) PNC1, a photoreceptor neural cell therapy for the potential treatment of vision loss due to photoreceptor dysfunction or damage; and (v) RND1, a novel hypoimmune induced pluripotent stem cell line being developed in collaboration with Factor Bioscience Limited. For more information, please visit www.lineagecell.com or follow the company on X/Twitter @LineageCell.
Forward-Looking Statements
Lineage cautions you that all statements, other than statements of historical fact, in this press release, are forward-looking statements. Forward-looking statements, in some cases, can be identified by terms such as “believe,” “aim,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “can,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” “contemplate,” “project,” “target,” “tend to,” or the negative version of these words and similar expressions. Lineage’s forward-looking statements are based upon its current expectations and beliefs and involve assumptions that may never materialize or may prove to be incorrect. Such statements include, but are not limited to, statements relating to the closing of the offering of the securities to Broadwood, the total potential amount and use of proceeds from the offering, the exercise of the common warrants in cash prior to their expiration and the exercise of the common warrants upon the achievements of such milestone events or otherwise prior to their expiration. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the risks that the offering may not close due to the failure to satisfy the applicable closing conditions, including, with respect to the offering of securities to Broadwood, obtaining shareholder approval to satisfy applicable NYSE American rules, and that the common warrants may not be exercised or, if exercised, the exercise price may not be paid in cash, and those risks and uncertainties inherent in Lineage’s business and other risks discussed in Lineage’s filings with the SEC. Further information regarding these and other risks is included under the heading “Risk Factors” in Lineage’s periodic reports with the SEC, including Lineage’s most recent Annual Report on Form 10-K filed with the SEC and its other subsequent reports, which are available from the SEC’s website. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Lineage undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law. All forward-looking statements are expressly qualified in their entirety by these cautionary statements.
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Lineage Cell Therapeutics, Inc. IR
Ioana C. Hone
(ir@lineagecell.com)
(442) 287-8963
Russo Partners – Media Relations
Nic Johnson or David Schull
(Nic.johnson@russopartnersllc.com)
(David.schull@russopartnersllc.com)
(212) 845-4242
Source: Lineage Cell Therapeutics, Inc.
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