Precigen Announces Proposed $30 Million Public Offering of Common Stock

Rhea-AI Summary

Precigen (Nasdaq: PGEN) has announced a proposed $30 million public offering of its common stock. The company intends to grant underwriters a 30-day option to purchase up to an additional $4.5 million of common stock. Stifel is acting as the sole book-running manager for the offering. The offering is subject to market conditions, and there's no assurance regarding its completion or final terms.

The public offering will be made pursuant to a shelf registration statement on Form S-3, effective since January 17, 2024. A preliminary prospectus supplement and accompanying base prospectus will be filed with the SEC. The offering's final terms will be disclosed in a final prospectus supplement to be filed with the SEC.

Positive

• Potential to raise up to $34.5 million in capital
• Shelf registration statement already in place, streamlining the offering process

Negative

• Potential dilution of existing shareholders' equity
• Uncertainty regarding the offering's completion and final terms
• Additional shares in the market may put downward pressure on stock price

Insights

Financial Analyst

Precigen's proposed $30 million public offering of common stock is a significant move that warrants attention. This capital raise could potentially dilute existing shareholders but also provides important funding for the company's operations and development pipeline. The additional $4.5 million option for underwriters adds flexibility to the offering.

The use of a shelf registration statement suggests Precigen had anticipated the need for additional capital. This method allows for quicker execution of the offering, which is advantageous in volatile markets. However, the success of this offering will largely depend on investor appetite and market conditions, which adds an element of uncertainty.

Investors should closely monitor the final terms of the offering, including the price per share, as this will determine the extent of dilution and the market's reception to the deal. The involvement of Stifel as the sole book-runner indicates a focused approach to the offering, which could potentially impact its execution and pricing.

Biotech Industry Analyst

For Precigen, a clinical-stage biopharmaceutical company, this $30 million offering is important for advancing its gene and cell therapy pipeline. The biotech sector is capital-intensive and regular fundraising is common, especially for pre-revenue companies. This move suggests Precigen is proactively managing its cash runway, which is essential for continued R&D and clinical trial progression.

The timing of this offering, coming after the shelf registration became effective in January 2024, indicates a strategic decision to tap into the markets now. Investors should consider how this additional capital aligns with Precigen's upcoming milestones and burn rate. While dilution is a concern, it's often a necessary trade-off for biotech companies to fund their long-term growth and potential breakthrough therapies.

The market's response to this offering could serve as a barometer for investor confidence in Precigen's technology platforms and clinical programs. A successful raise would provide Precigen with a stronger financial position to pursue its development goals.

GERMANTOWN, Md., Aug. 6, 2024 /PRNewswire/ -- Precigen, Inc. (Nasdaq: PGEN) today announced it has commenced a $30.0 million underwritten public offering of its common stock. In addition, Precigen intends to grant the underwriters a 30-day option to purchase up to an additional $4.5 million of common stock. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the size or terms of the offering. All of the shares in the proposed offering are to be sold by Precigen.

Stifel is acting as the sole book-running manager for the offering.

The public offering will be made pursuant to a shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (SEC) and became effective on January 17, 2024. A preliminary prospectus supplement and accompanying base prospectus relating to and describing the terms of the offering will be filed with the SEC and will be on the SEC's website at www.sec.gov. Copies of the preliminary prospectus supplement and base prospectus relating to this offering may be obtained, when available, from Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at +1 (415) 364-2720 or by email at syndprospectus@stifel.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these shares in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Precigen
Precigen (Nasdaq: PGEN) is a dedicated discovery and clinical stage biopharmaceutical company advancing the next generation of gene and cell therapies using precision technology to target the most urgent and intractable diseases in our core therapeutic areas of immuno-oncology, autoimmune disorders, and infectious diseases. Our technologies are designed to enable us to find innovative solutions for affordable biotherapeutics in a controlled manner. Precigen operates as an innovation engine progressing a preclinical and clinical pipeline of well-differentiated therapies toward clinical proof-of-concept and commercialization.

Cautionary Statement Regarding Forward-Looking Statements
Some of the statements made in this press release are forward-looking statements. These forward-looking statements are based upon Precigen's current expectations and projections about future events, including the proposed public offering and the size or terms of such offering. Various factors may cause differences between Precigen's expectations and actual results. These risks and uncertainties include, without limitation, risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the proposed public offering, as well as that we have broad discretion in the use of proceeds. There can be no assurance that Precigen will be able to complete the proposed public offering on the anticipated terms, or at all. For further information on potential risks and uncertainties, and other important factors, any of which could cause Precigen's actual results to differ from those contained in the forward-looking statements, see the section entitled "Risk Factors" in Precigen's most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.

Investor Contact:
Steven M. Harasym
Vice President, Investor Relations
Tel: +1 (301) 556-9850
investors@precigen.com

Media Contacts:
Donelle M. Gregory
press@precigen.com

Glenn Silver
Lazar-FINN Partners
glenn.silver@finnpartners.com

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SOURCE Precigen, Inc.

FAQ

What is the size of Precigen's (PGEN) proposed public offering?

Precigen (PGEN) has announced a proposed $30 million public offering of its common stock, with an additional option for underwriters to purchase up to $4.5 million of common stock.

Who is the book-running manager for Precigen's (PGEN) public offering?

Stifel is acting as the sole book-running manager for Precigen's (PGEN) public offering.

When did Precigen's (PGEN) shelf registration statement become effective?

Precigen's (PGEN) shelf registration statement on Form S-3 became effective on January 17, 2024.

What is the purpose of Precigen's (PGEN) public offering announced on August 6, 2024?

While not explicitly stated in the press release, public offerings are typically conducted to raise capital for various corporate purposes such as funding research and development, expanding operations, or strengthening the company's financial position.