On October 25, 2022 Gritstone bio, Inc. (Nasdaq: GRTS), a clinical-stage biotechnology company that aims to develop the world’s most potent vaccines, reported that it has executed a securities purchase agreement to sell, through a private investment in public equity (PIPE) financing, 6,637,165 shares of its common stock at a price of $2.26 per share of common stock and 13,274,923 pre-funded warrants to purchase up to 13,274,923 shares of common stock at a price of $2.2599 per pre-funded warrant for aggregate gross proceeds of approximately $45.0 million, before deducting placement agent fees and offering expenses. Each pre-funded warrant will have an exercise price of $0.0001 per share, will be exercisable immediately, and will be exercisable until exercised in full (Press release, Gritstone Oncology, OCT 25, 2022, View Source [SID1234622346]). The transaction is expected to close on October 27, 2022, subject to customary closing conditions. Gritstone intends to use the net proceeds from the PIPE financing to fund the ongoing clinical development of oncology and infectious disease programs and for general corporate purposes.
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The financing is being led by Redmile Group, with participation from new and existing investors, including Gilead Sciences, Invus, Hercules Capital, Inc. (NYSE: HTGC), and two new large institutional investors.
The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the U.S. except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Gritstone has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock and shares of common stock issuable upon the exercise of the pre-funded warrants issued in this private placement.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, 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.