Arcellx Announces Upsizing and Pricing of Follow-On Public Offering

Rhea-AI Summary

Arcellx, Inc. (NASDAQ: ACLX) announced a follow-on public offering of 7,000,000 shares at $16.00 per share, raising $112 million in gross proceeds. This offering is an increase from the initial size of 4,000,000 shares. Underwriters have a 30-day option to purchase an additional 1,050,000 shares. The offering is set to close on June 21, 2022. BofA Securities, SVB Securities, William Blair, and Canaccord Genuity are acting as joint book-running managers.

Positive

• Gross proceeds of $112 million to enhance funding for innovative immunotherapies.
• Upsized offering reflects strong demand for Arcellx shares.
• Joint venture with reputable underwriters may enhance market confidence.

Negative

• Dilution risk for existing shareholders due to additional shares being sold.
• -

-- Public Offering of 7,000,000 Shares of Common Stock for Gross Proceeds of $112 Million --

REDWOOD City, Calif., June 15, 2022 /PRNewswire/ -- Arcellx, Inc. (NASDAQ: ACLX), a biotechnology company reimagining cell therapy through the development of innovative immunotherapies for patients with cancer and other incurable diseases, today announced the pricing of an upsized underwritten follow-on offering of 7,000,000 shares of common stock at a price to the public of $16.00 per share. The offering was upsized to 7,000,000 shares of Arcellx's common stock from the original offering size of 4,000,000 shares. The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Arcellx, are expected to be $112 million. In addition, Arcellx has granted the underwriters a 30-day option to purchase up to an additional 1,050,000 shares of common stock on the same terms and conditions. The offering is expected to close on June 21, 2022, subject to the satisfaction of customary closing conditions. All of the shares in the proposed offering will be sold by Arcellx.

BofA Securities, SVB Securities, William Blair and Canaccord Genuity are acting as joint book-running managers for the offering.

Registration statements relating to the offering have been filed with the Securities and Exchange Commission and became effective today. The offering is made only by means of a prospectus, copies of which may be obtained, when available, from: BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, Attention: Prospectus Department, or by email at dg.prospectus_requests@bofa.com; or SVB Securities LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, Massachusetts 02109, by telephone at 1-800-808-7525, ext. 6105, or by email at syndicate@svbsecurities.com. William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, by telephone at 1-800-621-0687, or by email at prospectus@williamblair.com; or Canaccord Genuity LLC, Attention: Syndicate Department, 99 High Street, 12th Floor, Boston, MA 02110, or by telephone at (617) 371-3900, or by email at prospectus@cgf.com. Copies of the final prospectus, when available, related to the offering will be available at www.sec.gov.

This press release shall 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 the registration or qualification under the securities laws of any such state or jurisdiction.

About Arcellx, Inc.

Arcellx, Inc. is a clinical-stage biotechnology company reimagining cell therapy by engineering innovative immunotherapies for patients with cancer and other incurable diseases. Arcellx believes that cell therapies are one of the forward pillars of medicine and Arcellx's mission is to advance humanity by developing cell therapies that are safer, more effective, and more broadly accessible. Arcellx's lead product candidate, CART-ddBCMA, is being developed for the treatment of relapsed or refractory multiple myeloma (r/r MM) in an ongoing Phase 1 study. CART-ddBCMA has been granted Fast Track, Orphan Drug, and Regenerative Medicine Advanced Therapy designations by the U.S. Food and Drug Administration.

Arcellx is also advancing its dosable and controllable CAR-T therapy, ARC-SparX, through two programs: a Phase 1 study of ACLX-001 for r/r MM, initiated in the second quarter of 2022; and ACLX-002 in relapsed or refractory acute myeloid leukemia and high-risk myelodysplastic syndrome, expected to enter the clinic in the second half of 2022.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this press release that are not purely historical are forward-looking statements. The forward-looking statements contained herein are based upon Arcellx's current expectations and involve assumptions that may never materialize or may prove to be incorrect. These forward-looking statements are neither promises nor guarantees and are subject to a variety of risks and uncertainties, including risks that may be found in the section entitled "Risk Factors" in documents that Arcellx files from time to time with the Securities and Exchange Commission and in the Form S-1 for this offering, as filed with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this press release, and Arcellx assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

For more information, please contact:

Myesha Lacy
Arcellx, Inc.
mlacy@arcellx.com

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SOURCE Arcellx, Inc

FAQ

What is the offering size for ACLX?

Arcellx is offering 7,000,000 shares of common stock.

What are the gross proceeds expected from ACLX's offering?

The expected gross proceeds from the offering are $112 million.

When is the closing date for ACLX's public offering?

The closing date for the offering is scheduled for June 21, 2022.

Who are the underwriters for ACLX's offering?

The underwriters include BofA Securities, SVB Securities, William Blair, and Canaccord Genuity.

Is there an option for the underwriters in ACLX's offering?

Yes, the underwriters have a 30-day option to purchase up to an additional 1,050,000 shares.