Exagen Inc. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Exagen Inc. (XGN), an autoimmune testing solutions provider, has announced a proposed public offering of common stock. The company plans to grant underwriters a 30-day option to purchase up to an additional 15% of the offered shares. Canaccord Genuity will serve as the sole bookrunner for the offering. The offering will be conducted through a shelf registration statement on Form S-3 that was filed with the SEC on November 17, 2023, and declared effective on November 29, 2023. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

Positive

• None.

Negative

• Potential dilution of existing shareholders' value through new share issuance
• No specified use of proceeds mentioned in the announcement

Insights

Financial Analyst

Exagen's stock offering will dilute current shares but may strengthen its financial position; impact depends on undisclosed terms and proceeds use.

Exagen's announced public stock offering represents a significant capital-raising initiative with both strategic opportunities and dilution considerations for investors. While the specifics of the offering size, price, and proceeds use remain undisclosed, this move will introduce new shares to the market - potentially diluting existing shareholders' ownership percentages and earnings per share.

The company's selection of Canaccord Genuity as the sole bookrunner suggests a targeted approach to this capital raise. Investors should note that Exagen has prepared for this move well in advance, having established a shelf registration with the SEC in November 2023, which provides the legal framework for this offering.

The conditional language throughout the announcement is particularly significant. The company explicitly states the offering is "subject to market and other conditions" with "no assurance as to whether or when the offering may be completed." This indicates the transaction remains preliminary, with execution dependent on favorable market conditions.

For current shareholders and prospective investors, the forthcoming preliminary and final prospectus supplements will be critical documents, as they will reveal the concrete details needed to properly evaluate this transaction. These filings will disclose the offering size, price, and intended use of proceeds - all essential factors in determining the ultimate impact on shareholder value.

While capital raises can provide companies with financial flexibility to pursue growth initiatives and strengthen their balance sheet, they come at the cost of ownership dilution. Without knowing the specific terms or strategic purpose behind this offering, the announcement itself carries a balanced set of potential positives and negatives for Exagen stakeholders.

CARLSBAD, Calif., May 07, 2025 (GLOBE NEWSWIRE) -- Exagen Inc. (Nasdaq: XGN), a leading provider of autoimmune testing solutions, today announced that it has commenced an underwritten public offering of shares of its common stock. In connection with the offering, Exagen intends to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering. All of the shares of common stock to be sold in the offering will be sold by Exagen. 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 actual size or terms of the offering.

Canaccord Genuity is acting as sole bookrunner for the offering.

The public offering will be made pursuant to a shelf registration statement on Form S-3 (including a base prospectus) that was filed with the Securities and Exchange Commission (the “SEC”) on November 17, 2023, as amended on November 27, 2023, and declared effective by the SEC on November 29, 2023. A preliminary prospectus supplement relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. The offering is being made only by means of a prospectus and related prospectus supplement, copies of which may be obtained from Canaccord Genuity LLC, Attention: Syndication Department, 1 Post Office Square, Suite 3000, Boston, MA 02109, or by email at prospectus@cgf.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 will there be any sale of these securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Exagen

Exagen Inc. (Nasdaq: XGN) is a leading provider of autoimmune diagnostics, committed to transforming care for patients with chronic and debilitating autoimmune conditions. Based in San Diego County, California, Exagen’s mission is to provide clarity in autoimmune disease decision making and improve clinical outcomes through its innovative testing portfolio. The Company’s flagship product, AVISE^® CTD, enables clinicians to more effectively diagnose complex autoimmune conditions such as lupus, rheumatoid arthritis, and Sjögren’s syndrome earlier and with greater accuracy. Exagen’s laboratory specializes in the testing of rheumatic diseases, delivering precise and timely results, supported by a full suite of AVISE^®-branded tests for disease diagnosis, prognosis, and monitoring. With a focus on research, innovation, education, and patient-centered care, Exagen is dedicated to addressing the ongoing challenges of autoimmune disease management.

For more information, please visit Exagen.com or follow @ExagenInc on X.

Forward Looking Statements

Exagen cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on Exagen’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding: uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all and other risks and uncertainties that are described under the heading “Risk Factors” in Exagen’s preliminary prospectus supplement to be filed with the SEC, Exagen’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 11, 2025 and any subsequent filings with the SEC. The inclusion of forward-looking statements should not be regarded as a representation by Exagen that any of its plans will be achieved. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Exagen undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contact:
Ryan Douglas
Exagen Inc.
ir@exagen.com
760.560.1525

FAQ

What is the purpose of Exagen's (XGN) public offering announced on May 7, 2025?

Exagen announced a proposed public offering of common stock, though specific details about the use of proceeds were not disclosed in the announcement.

Who is the underwriter for Exagen's (XGN) May 2025 stock offering?

Canaccord Genuity is acting as the sole bookrunner for Exagen's public offering.

What is the size of the additional share purchase option in Exagen's (XGN) 2025 offering?

Exagen plans to grant underwriters a 30-day option to purchase up to an additional 15% of the offered shares.

When was Exagen's (XGN) shelf registration statement declared effective by the SEC?

The shelf registration statement was declared effective by the SEC on November 29, 2023.