Shattuck Labs Announces $50 Million Public Offering of Common Stock and Concurrent Private Placement of Pre-Funded Warrants
Shattuck Labs, Inc. (NASDAQ: STTK) announced the pricing of a registered offering of 4,651,163 shares of common stock at $6.45 per share, as well as a private placement of pre-funded warrants to purchase 3,100,823 shares of common stock at a purchase price of $6.4499 per pre-funded warrant, with expected gross proceeds of approximately $50 million.
The announcement by Shattuck Labs regarding the pricing of a registered offering and concurrent private placement is a significant financial event for the company. The capital raised, expected to be around $50 million before fees, indicates a strategic move to bolster the company's cash reserves. This infusion of funds could be allocated towards advancing their clinical trials, expanding their R&D pipeline, or preparing for commercialization activities, depending on their current stage and strategy.
For investors, the immediate dilution effect of the new shares and pre-funded warrants could potentially exert downward pressure on the stock price in the short-term. However, if the market perceives the capital is being used effectively to accelerate value-creating projects, there may be a positive long-term impact. It is also noteworthy that the offering is priced at the closing market price, which can be seen as a vote of confidence by the underwriters in the company's current valuation.
In the context of the biotech industry, Shattuck Labs' focus on bi-functional fusion proteins for cancer and autoimmune diseases is a sophisticated area of R&D that requires significant investment. The offering's proceeds may help Shattuck to maintain a competitive edge in this space. The ability to raise capital is often a reflection of investor belief in the potential of a company's technology and pipeline.
The biotech sector is highly volatile and dependent on clinical outcomes. Therefore, the long-term success of this financial move will be closely tied to the results of their ongoing and future clinical trials. Investors and analysts will be monitoring the progress of these trials to assess the efficacy and safety of the company's product candidates, which will be critical in determining the return on investment for the newly raised capital.
From a medical research perspective, the capital raised by Shattuck Labs is vital for sustaining the lengthy and costly process of drug development. The bi-functional fusion proteins being developed by Shattuck represent a novel approach in targeting diseases, which could potentially offer improved outcomes over existing therapies if proven effective in clinical trials.
Investors should be aware that drug development is inherently risky, with many candidates failing to make it to market. The successful development and eventual FDA approval of Shattuck’s candidates could, however, result in substantial returns. The financial health of the company, as bolstered by this offering, is crucial to support the continuation of their research activities and to navigate the regulatory landscape.
12/21/2023 - 08:00 AM
AUSTIN, TX and DURHAM, NC, Dec. 21, 2023 (GLOBE NEWSWIRE) -- Shattuck Labs, Inc. (“Shattuck” or the “company”) (NASDAQ: STTK), a clinical-stage biotechnology company pioneering the development of bi-functional fusion proteins as a new class of biologic medicine for the treatment of patients with cancer and autoimmune disease, today announced the pricing of a registered offering of 4,651,163 shares of common stock, par value $0.00 01 (the “common stock”), at a price of $6.45 per share, which is priced at the closing price on Nasdaq for the common stock on December 20, 2023. In addition to the shares sold in the registered offering, Shattuck announced the concurrent pricing of a private placement of pre-funded warrants to purchase 3,100,823 shares of common stock at a purchase price of $6.44 99 per pre-funded warrant, which represents the per share offering price for the common stock less the $0.00 01 per share exercise price for each pre-funded warrant. The gross proceeds to Shattuck from the registered offering and private placement, before deducting the underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $50 million . The offering is expected to close on or about December 26, 2023, subject to customary closing conditions.
Evercore ISI is acting as sole book-running manager for the offering.
Shattuck intends to use the net proceeds from the registered offering and the private placement for the development of its pipeline candidates, including SL-172154, and working capital and general corporate purposes.
A shelf registration statement on Form S-3 (File No. 333-263553) relating to the registered offering was filed with the Securities and Exchange Commission (“SEC”) on March 15, 2022 and declared effective on July 29, 2022. The registered offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of an effective registration statement. A final prospectus supplement and accompanying prospectus relating to the offering shares will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC’s website at http://www.sec.gov or by contacting Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055; by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities referenced herein, nor shall there be any sale of such 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.
About Shattuck Labs, Inc.
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Investor & Media Contact: InvestorRelations@shattucklabs.com
What did Shattuck Labs, Inc. (STTK) announce?
Shattuck Labs, Inc. (STTK) announced the pricing of a registered offering of 4,651,163 shares of common stock at $6.45 per share, as well as a private placement of pre-funded warrants to purchase 3,100,823 shares of common stock at a purchase price of $6.4499 per pre-funded warrant.
What is the expected gross proceeds from the offering and private placement?
The gross proceeds to Shattuck Labs, Inc. (STTK) from the registered offering and private placement, before deducting the underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $50 million.
When is the offering expected to close?
The offering is expected to close on or
