Solid Biosciences Inc, a leading life sciences company specializing in the development of precision genetic medicines for neuromuscular and cardiac diseases, witnessed a surge in its stock value today after the company disclosed that it has entered into a securities purchase agreement with a select group of institutional accredited investors for a substantial private placement amounting to approximately $108.9 million.
At the time of this publication, Solid Biosciences Inc stock (SLDB) has witnessed a surge.
Solid Biosciences Inc
Current Price: $7.95
Change : +2.00
Change (%): (33.61%)
Volume: 684.6K
Source: Tomorrow Events Market Data
The private placement, anticipated to conclude around January 11, 2024, is contingent upon the fulfillment of customary closing conditions and is being executed in adherence to applicable Nasdaq rules. The pricing structure for the private placement has been strategically formulated to meet the “Minimum Price” requirement, ensuring compliance with regulatory standards.
Participating in the private placement are both new and existing investors, notably including Perceptive Advisors, Adage Capital Partners LP, Deerfield Management Company, Invus, Janus Henderson Investors, Vestal Point Capital, LP, Bain Capital Life Sciences, RA Capital Management, and an undisclosed life sciences investor, among others.
Facilitating the private placement, Citigroup and Cantor have served as joint lead placement agents for Solid Biosciences Inc. The company, in this private placement initiative, is offering 16,973,103 shares of common stock at a unit price of $5.53 per share. Additionally, pre-funded warrants, serving as an alternative to common stock, are being made available for purchase. These warrants enable the acquisition of up to 2,712,478 shares of common stock at a price of $5.529 per pre-funded warrant. Each pre-funded warrant features an exercise price of $0.001 per share, immediate exercisability, and remains exercisable until fully utilized.
The net proceeds from this private placement are earmarked for several key purposes. Solid Biosciences Inc intends to allocate the funds towards supporting ongoing pipeline development programs, fueling business development activities, and catering to working capital needs and other general corporate requirements.
It’s imperative to note that the securities involved in this private placement have not been registered under the Securities Act of 1933, as amended, or any relevant state or jurisdictional securities laws. Consequently, these securities may not be offered or sold within the United States without proper registration or an applicable exemption from the registration prerequisites outlined in the Securities Act and relevant state or jurisdictional securities laws. To address this, Solid Biosciences Inc has committed to filing a registration statement with the U.S. Securities and Exchange Commission (SEC) within 30 days post the private placement closing. This registration statement will cover the resale of the common stock issued in the private placement and the common stock obtainable upon the exercise of the pre-funded warrants issued during this financial undertaking.
