Tenaya Therapeutics Announces Pricing of Underwritten Offering
Tenaya Therapeutics, Inc. announced the pricing of its underwritten offering of 8,888,890 shares of its common stock at an offering price of $4.50 per share, expecting to receive total gross proceeds of approximately $50 million. The deal included participation from new and existing investors, with the offering expected to close on or before February 11, 2024.
The capital raise announced by Tenaya Therapeutics through the public offering of shares and pre-funded warrants is a strategic financial move that is set to inject approximately $50 million in gross proceeds into the company. This infusion of capital is significant for Tenaya, as it provides the necessary funds to advance their clinical programs targeting heart disease treatments. The pricing of shares at $4.50 indicates a market-driven valuation of the company's stock, which is crucial for both current and prospective investors in gauging the investment's potential.
From a financial perspective, the participation of notable investment firms and funds such as BlackRock and RA Capital Management suggests a vote of confidence in Tenaya's prospects. However, it is important to scrutinize the terms of the pre-funded warrants, as they could imply future dilution of common stock which may affect share price and existing shareholders' value. The closing of the offering will be a key milestone to monitor, as it will finalize the capital increase and set the stage for the company's next steps in its operational plan.
The biotechnology sector is highly capital-intensive, with companies like Tenaya Therapeutics requiring substantial funding to progress through costly clinical trials and regulatory processes. The decision to raise funds through a public offering is a common route for biotech firms seeking to finance their research and development activities. The successful closing of this offering will likely bolster Tenaya's financial runway, enabling them to continue their work without the immediate need for further capital raises, which is often a concern for investors in this industry.
Market reaction to such news can vary, as the potential for dilution may be offset by the anticipation of progress in the company's pipeline. The long-term impact on Tenaya's stock will depend on the successful deployment of the raised capital towards achieving milestones that can lead to value creation, such as positive clinical trial results or partnerships. The involvement of established investment entities also adds a layer of credibility to the offering, potentially attracting further interest in Tenaya's market activity.
In the realm of biotechnology, the development of therapies for heart disease represents a substantial market with a significant unmet medical need. Tenaya's focus on curative therapies positions them within a niche yet critical segment of the market. The financial commitment from investors underscores the potential they see in Tenaya's therapeutic approach and pipeline. It is imperative to understand that the road to bringing a new therapy to market is fraught with scientific and regulatory challenges and the capital raised is crucial for overcoming these hurdles.
Analyzing the specifics of the offering, the price per share and the structure of the pre-funded warrants provide insights into investor sentiment and the company's current financial strategy. The pricing strategy, slightly below market value, may be designed to incentivize investment while acknowledging the risks inherent in clinical-stage biotech ventures. The success of this offering could be a bellwether for the company's future funding capabilities and its ability to sustain the momentum in its research and development endeavors.
02/08/2024 - 08:00 AM
SOUTH SAN FRANCISCO, Calif., Feb. 08, 2024 (GLOBE NEWSWIRE) -- Tenaya Therapeutics, Inc. (Nasdaq: TNYA), a clinical-stage biotechnology company with a mission to discover, develop and deliver potentially curative therapies that address the underlying causes of heart disease, today announced the pricing of its underwritten offering of 8,888,890 shares of its common stock at an offering price of $4.50 per share and, to certain investors in lieu of common stock, pre-funded warrants to purchase up to an aggregate of 2,222,271 shares of its common stock at a purchase price of $4.49 9 per each pre-funded warrant, which represents the per share offering price for the common stock less the $0.00 1 per share exercise price for each such pre-funded warrant. All of the securities are to be sold by Tenaya. The deal included participation from new and existing investors including The Column Group, RA Capital Management, Venrock Healthcare Capital Partners, Octagon Capital, funds and accounts managed by BlackRock, Armistice Capital, Integral Health Asset Management, PFM Health Sciences, LP, Soleus Capital, as well as two large investment management firms. Before deducting the underwriting discounts and commissions and offering expenses, Tenaya expects to receive total gross proceeds of approximately $50 million . The offering is expected to close on or about February 12, 2024, subject to satisfaction of customary closing conditions.
Leerink Partners and TD Cowen are acting as joint book running managers for the offering. LifeSci Capital is acting as lead manager for the offering.
The securities are being offered by Tenaya pursuant to a Registration Statement on Form S-3 previously filed and declared effective by the SEC, and Tenaya will also file a prospectus supplement and accompanying prospectus relating to and describing the terms of the offering with the SEC. These documents can be accessed for free through the SEC’s website at www.sec.gov .
When available, copies of the prospectus supplement and the accompanying prospectus relating to this offering may also be obtained from: Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at 1 (800) 808-7525, ext. 6132, or by email at syndicate@leerink.com; or Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, by email at prospectus_department@cowen.com or by telephone at (833) 297-2926.
This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that state or jurisdiction.
About Tenaya Therapeutics
Forward-Looking Statements This press release contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, but are not limited to, statements relating to the offering, including the size and terms of the offering, the timing of the closing of the offering, and the expected gross proceeds. These forward-looking statements are neither promises nor guarantees and are subject to a variety of risks and uncertainties, including but not limited to: the completion of the offering on the anticipated terms or at all, including the satisfaction of customary closing conditions; general economic and market conditions as well as geopolitical developments; and other risks. For further information regarding the foregoing and additional risks that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Tenaya in general, see Tenaya’s recent Quarterly Report on Form 10-Q filed on November 8, 2023, the prospectus supplement related to the proposed public offering we plan to file and subsequent filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this press release, and Tenaya assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts
Investors IR@tenayathera.com
Anne-Marie FieldsAnnemarie.fields@sternir.com
What is the offering price of Tenaya Therapeutics, Inc.'s common stock?
The offering price of Tenaya Therapeutics, Inc.'s common stock is $4.50 per share.
How many shares are included in the underwritten offering?
The underwritten offering includes 8,888,890 shares of Tenaya Therapeutics, Inc.'s common stock.
What is the total gross proceeds expected to be received by Tenaya Therapeutics, Inc.?
Tenaya Therapeutics, Inc. expects to receive total gross proceeds of approximately $50 million.
When is the offering expected to close?
The offering is expected to close on or before February 11, 2024.
