Regulus Therapeutics Announces Oversubscribed $100 Million Private Placement of Equity

Rhea-AI Summary

Regulus Therapeutics Inc. (RGLS) has entered into a definitive securities purchase agreement for a private placement with institutional and accredited investors. The oversubscribed financing includes participation from various investors, indicating strong market interest.

Financial Analyst

The private placement by Regulus Therapeutics Inc. represents a significant capital infusion, which is expected to bolster the company's financial position. The involvement of reputable institutional investors like Adage Capital Partners and RA Capital Management signals a strong vote of confidence in the company's potential and strategic direction. This capital raise could facilitate accelerated development of their microRNA-targeting therapies, possibly leading to quicker paths to market and revenue generation.

From a financial perspective, the oversubscription of the offering indicates a high demand for Regulus's securities, which could be indicative of underpricing or substantial investor interest in the company's growth prospects. This may have positive implications for the stock price in the short term. However, it's important to monitor for potential dilution of existing shares, as the issuance of new securities can lead to a decrease in earnings per share and a redistribution of shareholder equity.

Medical Research Analyst

MicroRNAs are a class of small, non-coding RNAs that play a crucial role in regulating gene expression. Regulus's focus on these molecules for therapeutic applications is at the forefront of genetic research and has the potential to address a variety of diseases with unmet medical needs. The influx of funds from this private placement could significantly advance their research and development efforts, potentially leading to breakthrough therapies.

Investors should note that drug development is inherently risky and capital-intensive, with a long timeline from discovery to commercialization. The success of Regulus's pipeline candidates will be critical in determining the long-term return on investment. The participation of seasoned investors in the field may be seen as a positive indicator of the company's scientific and commercial strategies.

Market Research Analyst

Regulus's success in securing funding from a diverse group of institutional investors reflects not only on the company's prospects but also on the broader market's appetite for innovative biopharmaceutical ventures. The presence of multiple high-profile investors suggests a competitive environment where companies like Regulus must continually demonstrate progress and potential to retain investor interest.

It's also important to consider the broader biopharmaceutical market trends. Investment in this sector is often cyclical, with periods of high enthusiasm followed by more conservative investment climates. Regulus's ability to attract funding in this context could be an indicator of the sector's current health and the company's relative position within it.

SAN DIEGO, March 12, 2024 /PRNewswire/ -- Regulus Therapeutics Inc. (Nasdaq: RGLS), a biopharmaceutical company focused on the discovery and development of innovative medicines targeting microRNAs (the "Company" or "Regulus"), today announced that it has entered into a definitive securities purchase agreement in connection with a private placement to certain institutional investors and other accredited investors. The oversubscribed financing includes participation from new and existing institutional investors, including Adage Capital Partners L.P., Deep Track Capital, the Federated Hermes Kaufmann Funds, New Enterprise Associates (NEA), Octagon Capital, RA Capital Management, and Vivo Capital. Upon the closing of the financing, which is anticipated to occur on or about March 14, 2024, the Company expects to receive gross proceeds of approximately $100 million. The closing of the financing is subject to customary closing conditions.

Leerink Partners is acting as the lead placement agent for the financing. H.C. Wainwright & Co. is acting as co-placement agent for the financing. Canaccord Genuity is acting as a financial advisor.

Under the securities purchase agreement, the investors have agreed to purchase shares of the Company's common stock ("Common Stock") at a purchase price of $1.60 per share. Certain investors have also agreed to purchase, in lieu of shares of Common Stock, shares of newly designated, non-voting Class A-6 convertible preferred stock at a purchase price of $160.00 per share. Each share of non-voting Class A-6 convertible preferred stock will be convertible into 100 shares of Common Stock, subject to certain beneficial ownership conversion limitations.

The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws. Accordingly, the securities may not be reoffered or resold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

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

About Regulus

Regulus Therapeutics Inc. (Nasdaq: RGLS) is a biopharmaceutical company focused on the discovery and development of innovative medicines targeting microRNAs. Regulus has leveraged its oligonucleotide drug discovery and development expertise to develop a pipeline complemented by a rich intellectual property estate in the microRNA field. Regulus maintains its corporate headquarters in San Diego, CA.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements associated with the timing, size and completion of the private placement. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "intends," "will," "goal," "potential" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Regulus' current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks associated with market conditions and the satisfaction of customary closing conditions. These and other risks are described in additional detail in Regulus' filings with the Securities and Exchange Commission, including under the "Risk Factors" heading of Regulus' quarterly report on Form 10-Q for the quarter ended September 30, 2023. All forward-looking statements contained in this press release speak only as of the date on which they were made. Regulus undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

 

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SOURCE Regulus Therapeutics Inc.

What type of company is Regulus Therapeutics Inc. (RGLS)?

Regulus Therapeutics Inc. (RGLS) is a biopharmaceutical company focused on discovering and developing innovative medicines targeting microRNAs.

Who are some of the institutional investors participating in the private placement?

Some of the institutional investors participating in the private placement include Adage Capital Partners L.P., Deep Track Capital, the Federated Hermes Kaufmann Funds, New Enterprise Associates (NEA), Octagon Capital, RA Capital Management, and Vivo Capital.

When is the anticipated closing date of the financing?

The closing of the financing is anticipated to occur on or before a specified date.