Absci Announces Closing of Public Offering of Common Stock Including Full Exercise of the Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Absci Corporation (ABSI) successfully closes underwritten public offering, raising approximately $86.4 million for drug development and platform investment.

Insights

Financial Analyst

The recent public offering by Absci Corporation represents a significant capital infusion, amounting to approximately $86.4 million before expenses. This move is indicative of the company's aggressive strategy to scale up its Integrated Drug Creation™ platform and advance its internal asset programs. The full exercise of the underwriters' option to purchase additional shares suggests a strong market interest, which could be seen as a positive signal for the company's valuation.

From a financial perspective, the offering price of $4.50 per share provides a benchmark for current investor appetite and valuation metrics within the biotech sector. It is essential to analyze Absci's historical stock performance, the pricing relative to its peers and the potential dilutive effect on existing shareholders. The capital raise should be juxtaposed with the company's burn rate and runway extension, which are critical factors for investors assessing the sustainability of Absci's operations.

Market Research Analyst

With the biotechnology sector being highly competitive and capital-intensive, Absci's move to secure additional funding through a public offering is a strategic effort to maintain its competitive edge. The focus on enhancing AI and wet-lab technologies is a clear indication of the company's commitment to innovation and staying at the forefront of the generative AI drug discovery niche. This niche is rapidly evolving and the ability to generate a robust pipeline can significantly impact Absci's market positioning and future partnerships.

Investors should monitor the deployment of the raised funds into Absci's platform and asset development. Effective allocation could lead to accelerated drug discovery processes, potentially reducing time-to-market for new drugs and leading to strategic collaborations or licensing deals, which are common value inflection points in the biotech industry.

Biotechnology Legal Expert

Compliance with SEC regulations is paramount for public offerings and Absci's adherence to the process, including the use of a shelf registration statement, is a testament to its regulatory diligence. The shelf registration allows for a more expedited process of selling shares when market conditions are favorable, providing the company with flexibility in capital raising efforts.

However, potential investors should be aware of the legal disclaimers, specifically the statement that this press release does not constitute an offer to sell securities. This is a standard legal precaution to prevent unlawful distribution of securities. Understanding the legal framework and implications of such offerings is crucial for stakeholders to appreciate the complexity and risks associated with investing in the biotech sector.

VANCOUVER, Wash., March 01, 2024 (GLOBE NEWSWIRE) -- Absci Corporation (Nasdaq: ABSI) (“Absci”), a data-first generative AI drug creation company, today announced the closing of its underwritten public offering of 19,205,000 shares of its common stock at a public offering price of $4.50 per share, before deducting underwriting discounts and commissions. The shares of common stock include 2,505,000 shares pursuant to the option granted by Absci to the underwriters, which was exercised in full. The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses, were approximately $86.4 million. All of the shares in the offering were sold by Absci.

Absci intends to use the net proceeds from the offering to fund the development of its internal asset programs, continued investment in its Integrated Drug Creation™ platform, including related AI and wet-lab technologies, and for working capital and other general corporate purposes.

Morgan Stanley and TD Cowen acted as joint book-running managers for the offering.

The shares of common stock were offered by Absci pursuant to an effective shelf registration statement on Form S-3 (File No. 333-267043) that was previously filed with the U.S. Securities and Exchange Commission (SEC) on August 24, 2022 and became effective on September 2, 2022. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC on February 27, 2024. The final prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC on February 28, 2024 and may be obtained from Morgan Stanley & Co LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, by telephone: (866) 718-1649, or by email at prospectus@morganstanley.com; Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, by telephone at (833) 297-2926 or by email at Prospectus_ECM@cowen.com; or by accessing the SEC’s website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Absci

Absci is a data-first generative AI drug creation company that combines AI with scalable wet lab technologies to create better biologics for patients, faster. Our Integrated Drug Creation™ platform unlocks the potential to accelerate time to clinic and increase the probability of success by simultaneously optimizing multiple drug characteristics important to both development and therapeutic benefit. With the data to train, the AI to create, and the wet lab to validate, we can screen billions of cells per week, allowing us to go from AI-designed antibodies to wet lab-validated candidates in as little as six weeks. Absci’s headquarters is in Vancouver, WA, with its AI Research Lab in New York City and an Innovation Center in Zug, Switzerland.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding Absci’s anticipated public offering. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “expect,” “estimate,” “seek,” “predict,” “future,” “project,” “potential,” “continue,” “target” and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Any forward-looking statements in this press release, such as the intended use of proceeds, are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Absci’s Annual Report on Form 10-K for the year ended December 31, 2022, as amended, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, as well as discussions of potential risks, uncertainties, and other important factors in Absci’s other filings with the SEC, including those contained or incorporated by reference in the prospectus supplement and accompanying prospectus related to the public offering filed with the SEC. In addition, any forward-looking statements contained in this press release represent Absci’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. Absci explicitly disclaims any obligation to update any forward-looking statements, except as required by law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Investor Contact
Alex Khan
VP, Finance & Investor Relations
investors@absci.com

Media Contact
press@absci.com

FAQ

How many shares were offered in Absci Corporation's underwritten public offering?

Absci Corporation offered 19,205,000 shares of its common stock in the underwritten public offering.

What was the public offering price per share in Absci Corporation's underwritten public offering?

The public offering price per share in Absci Corporation's underwritten public offering was $4.50.

Who were the joint book-running managers for Absci Corporation's underwritten public offering?

Morgan Stanley and TD Cowen acted as joint book-running managers for Absci Corporation's underwritten public offering.

What will Absci Corporation use the net proceeds from the offering for?

Absci Corporation intends to use the net proceeds from the offering to fund the development of its internal asset programs, investment in its Integrated Drug Creation™ platform, and for general corporate purposes.

When did the final prospectus supplement and accompanying prospectus relating to the offering get filed with the SEC?

The final prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC on February 28, 2024.