On June 27, 2022 Precision BioSciences, Inc. (Nasdaq: DTIL) (the "Company"), a clinical stage gene editing company developing ARCUS-based ex vivo allogeneic CAR T and in vivo gene editing therapies, reported the closing of an underwritten offering of 35,971,224 shares of its common stock at an offering price of $1.39 per share, for total gross proceeds of approximately $50 million, before deducting underwriting discounts and commissions and offering expenses payable by the Company (Press release, Precision Biosciences, JUN 27, 2022, View Source [SID1234616267]). All of the shares of common stock were offered by the Company. The Company intends to use the net proceeds of the offering to help fund ongoing and planned research and development, and for working capital and general corporate purposes.
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The offering included new investors, including Great Point Partners, LLC, EcoR1 Capital, Heights Capital Management, Sphera Healthcare and Altium Capital, as well as participation from existing stockholders, including Cowen Healthcare Investments and Sio Capital Management.
With the proceeds from this offering, the $25 million equity purchased by Novartis at $2.01 per share and the pending receipt of $50 million upfront cash payment from Novartis, Precision expects that existing cash and cash equivalents, expected operational receipts, and available credit will be sufficient to fund its operating expenses and capital expenditure to year end 2024.
Jefferies acted as sole book-running manager for the offering.
The securities described above were offered by means of a prospectus supplement dated June 21, 2022, and accompanying prospectus dated June 11, 2020, forming part of the Company’s effective shelf registration statement (File No. 333-238857). The prospectus supplement and accompanying prospectus relating to this offering were filed with the U.S. Securities and Exchange Commission (the "SEC") and are available on the SEC’s website at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus may also be obtained by contacting: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022, via telephone: 877-821-7388 or via email: [email protected].
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.