Rezolute Announces Pricing of Offering of $90 Million of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Rezolute (NASDAQ: RZLT) has announced the pricing of an underwritten offering of common stock and pre-funded warrants, expected to raise approximately $90 million in gross proceeds. The offering includes 20,786,923 shares of common stock priced at $3.25 per share and pre-funded warrants for up to 6,905,385 shares at $3.2490 per warrant.

The offering features participation from notable investors including Federated Hermes Kaufmann Funds, Blackstone Multi-Asset Investing, and Great Point Partners. Guggenheim Securities is serving as the sole book-running manager. The closing is expected around April 24, 2025. The company plans to use the proceeds for research and development, general corporate expenses, and working capital needs.

Positive

• Substantial capital raise of $90 million strengthens balance sheet
• Strong institutional investor participation from well-known funds
• At-the-market pricing indicates market acceptance
• 30-day option for additional shares provides potential for more capital

Negative

• Significant dilution for existing shareholders due to large share issuance
• Pre-funded warrants create potential future dilution
• Offering price of $3.25 represents current market valuation constraints

Insights

Financial Analyst

Rezolute's $90M capital raise at premium pricing with elite investor participation strengthens financial position for late-stage rare disease development.

Rezolute has secured a $90 million capital infusion through an offering priced at $3.25 per share, representing a 4.5% premium to the current stock price of $3.11. This is remarkably positive as biotech offerings typically price at discounts to market value. The deal structure includes 20.79 million common shares and 6.91 million pre-funded warrants, with underwriters granted a 30-day option for an additional 4.15 million shares.

The financial impact is substantial given Rezolute's market capitalization of approximately $159 million – this raise represents over 56% of their pre-offering market value. The notable investor syndicate includes institutional heavyweights like Blackstone Multi-Asset Investing, Federated Hermes Kaufmann Funds, and Great Point Partners, signaling strong conviction in the company's prospects from sophisticated investors who conduct rigorous due diligence.

The capital allocation strategy focuses on research and development, working capital, and general corporate expenses – critical for advancing their late-stage hyperinsulinism therapy ersodetug through final development stages. This financing significantly strengthens Rezolute's balance sheet, potentially providing extended operational runway as they progress toward potential commercialization of their rare disease treatments.

Biotech Industry Expert

Rezolute's substantial $90M raise from elite biotech investors provides critical funding runway for advancing late-stage rare disease therapy ersodetug.

This $90 million financing represents a strategic inflection point for Rezolute's hyperinsulinism (HI) program. Their lead antibody therapy, ersodetug, targets a serious rare metabolic condition characterized by dangerously low blood sugar due to excessive insulin production. The therapy is designed with versatility to address all forms of HI, including both congenital and tumor-induced variants, which broadens its potential patient population within this orphan indication.

What's particularly noteworthy is the investor composition, featuring specialized healthcare funds with deep expertise in rare disease drug development. Participants like Federated Hermes Kaufmann Funds and Great Point Partners typically conduct extensive scientific and regulatory due diligence before deploying capital at this scale. Their involvement suggests confidence in both the clinical data package and commercial potential for ersodetug.

For rare disease therapeutics, where patient populations are small but unmet needs are significant, securing adequate capital through late-stage development and potential commercialization is critical. This infusion positions Rezolute to complete its remaining clinical development activities, prepare for potential regulatory submissions, and potentially begin pre-commercial activities without immediate financing concerns. The timing suggests management anticipates reaching important clinical or regulatory milestones that will require substantial operational resources in the near to mid-term.

NEW YORK, April 23, 2025 (GLOBE NEWSWIRE) -- Rezolute, Inc. (Nasdaq: RZLT) (“Rezolute” or the “Company”), a late-stage biopharmaceutical company committed to developing novel, transformative therapies for serious rare diseases, today announced the pricing of an underwritten offering, priced at-the-market under Nasdaq rules, of an aggregate of 20,786,923 shares of its common stock at an offering price of $3.25 per share, and, to certain investors in lieu of common stock, pre-funded warrants to purchase up to 6,905,385 shares of common stock at an offering price of $3.2490 per pre-funded warrant, which represents the per share offering price for the common stock less the $0.001 per share exercise price for each pre-funded warrant. Gross proceeds from the underwritten offering before deducting underwriting discounts and commissions and other offering expenses are expected to be approximately $90 million. Rezolute has also granted the underwriters a 30-day option to purchase up to an additional 4,153,846 shares of common stock at the offering price, less underwriting discounts and commissions.

All shares of common stock and pre-funded warrants to be sold in the offering will be offered by Rezolute. The closing of the offering is expected to occur on or about April 24, 2025, subject to the satisfaction of customary closing conditions.

The deal includes participation from new and existing investors, including Federated Hermes Kaufmann Funds, Blackstone Multi-Asset Investing, Great Point Partners, LLC, Marshall Wace, Woodline Partners LP, Nantahala Capital, Squadron Capital Management and select mutual funds.

Guggenheim Securities is acting as the sole book-running manager for the offering. BTIG, H.C. Wainwright & Co., and Jones are acting as lead managers for the offering. Craig-Hallum and Maxim Group LLC are acting as co-managers for the offering. WG Partners LLP is acting as financial advisor.

Rezolute intends to use the net proceeds from the offering for research and development, general corporate expense and working capital needs.

A shelf registration statement on Form S-3 (File No. 333-275562) relating to the securities to be offered in the offering was filed with the Securities and Exchange Commission (the “SEC”) and was declared effective on November 29, 2023. The offering will be made only by means of a prospectus supplement and accompanying prospectus that form a part of the registration statement. A preliminary prospectus supplement and final prospectus supplement and the accompanying prospectus relating to and describing the terms of the underwritten offering will be filed with the SEC and, when available, may be obtained on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and final prospectus supplement and accompanying prospectus relating to the offering, when available, may be obtained by contacting: Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, New York, New York 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com.

This press release does 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 registration or qualification under the securities laws of any such state or jurisdiction.

Rezolute, Inc.

Rezolute is a late-stage rare disease company focused on significantly improving outcomes for individuals with hypoglycemia caused by hyperinsulinism (“HI”). The Company’s antibody therapy, ersodetug, is designed to treat all forms of HI and has shown substantial benefit in clinical trials and real-world use for the treatment of congenital HI and tumor HI.

Forward-Looking Statements

Any statements in this press release about the Company’s future expectations, plans and prospects, including statements regarding the proposed offering, including statements regarding Rezolute’s expectations on the timing and completion of the offering and the anticipated use of proceeds therefrom, constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements about the Company’s strategy, future operations and future expectations and plans and prospects for the Company, and any other statements containing the words “anticipate,” “believe,” “estimate,” “expect,” “intend”, “goal,” “may”, “might,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions. Such forward-looking statements involve substantial risks and uncertainties that could cause the Company’s development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, those related to market and other financial conditions, the potential completion of the proposed offering or the size or terms thereof, satisfaction of customary closing conditions related to the proposed offering and other factors discussed in the “Risk Factors” section contained in the preliminary prospectus supplement and final prospectus supplement that will be filed with the SEC and the reports that the Company has filed with the SEC. Any forward-looking statements represent the Company’s views only as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so except as required by law.

Contacts:

Rezolute, Inc.
Christen Baglaneas
cbaglaneas@rezolutebio.com
508-272-6717

Media
Sarah Lima
Sarah@GalvinPR.com
(774) 766-0200

FAQ

What is the size and price of Rezolute's (RZLT) April 2025 stock offering?

Rezolute's offering includes 20,786,923 shares at $3.25 per share and pre-funded warrants for 6,905,385 shares at $3.2490, totaling approximately $90 million in gross proceeds.

Who are the major investors participating in RZLT's 2025 stock offering?

Major investors include Federated Hermes Kaufmann Funds, Blackstone Multi-Asset Investing, Great Point Partners, Marshall Wace, Woodline Partners LP, Nantahala Capital, and Squadron Capital Management.

How will Rezolute (RZLT) use the proceeds from its $90M offering?

Rezolute plans to use the net proceeds for research and development, general corporate expenses, and working capital needs.

What is the exercise price for RZLT's pre-funded warrants in the April 2025 offering?

The pre-funded warrants have an exercise price of $0.001 per share.