AGTC Announces Proposed Public Offering of Common Stock and Warrants

Rhea-AI Summary

Applied Genetic Technologies Corporation (Nasdaq: AGTC) has announced a public offering of its common stock and pre-funded warrants, expected to support its clinical trials in X-linked retinitis pigmentosa (XLRP) and achromatopsia (ACHM) programs. The offering, managed by Stifel, Wells Fargo Securities, and MTS Health Partners, is subject to market conditions. AGTC aims to utilize net proceeds for ongoing trials and general corporate purposes. A registration statement has been filed with the SEC.

Positive

• Funding for ongoing Skyline and Vista clinical trials in XLRP.
• Continued support for Phase 1/2 clinical trials in ACHM.

Negative

• Offering may lead to shareholder dilution.
• Uncertainty regarding completion and terms due to market conditions.

GAINESVILLE, Fla., and CAMBRIDGE, Mass., Jan. 27, 2021 (GLOBE NEWSWIRE) -- Applied Genetic Technologies Corporation (Nasdaq: AGTC), a biotechnology company conducting human clinical trials of adeno-associated virus (AAV)-based gene therapies for the treatment of rare diseases, today announced that it is offering to sell shares of its common stock and pre-funded warrants, together with accompanying warrants to purchase shares of its common stock in an underwritten public offering. All of the securities in the proposed offering are being sold by AGTC. The offering is subject to market conditions and there can be no assurance as to whether or when the offering may be completed or as to the actual size or terms of the offering.

Stifel, Wells Fargo Securities and MTS Health Partners are acting as joint book-running managers of the offering.

AGTC intends to use the net proceeds from this offering, together with other available funds, to fund its ongoing Skyline and Vista clinical trials in its X-linked retinitis pigmentosa (XLRP) program and its ongoing Phase 1/2 clinical trials in its Achromatopsia (ACHM) program, and for working capital and other general corporate purposes.

A registration statement relating to the shares of common stock, the pre-funded warrants and accompanying warrants being offered has been filed with, and declared effective by, the Securities and Exchange Commission (the “SEC”). A preliminary prospectus supplement relating to the offering has also been filed with the SEC and is available on the SEC’s website at http://www.sec.gov. Copies of the preliminary prospectus supplement and accompanying prospectus may be obtained from Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com; Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, NY 10001, by telephone at (800) 326-5897 or by email at cmclientsupport@wellsfargo.com; or MTS Securities, LLC, Attention: Syndicate Department, 623 Fifth Avenue, 14th Floor, New York, NY 10022, by telephone at (212) 887-2100 or by email at syndicate@mtspartners.com. 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 jurisdiction.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding AGTC’s proposed offering of securities, that involve a number of risks and uncertainties. Statements that are not historical facts are based on AGTC’s current expectations, beliefs and assumptions regarding the market for its common stock. There can be no assurance regarding the completion, timing or size of the proposed offering. Important factors that could cause actual outcomes to differ materially from those indicated by these forward-looking statements include risks and uncertainties related to market conditions, the satisfaction of customary closing conditions related to the proposed public offering and others described in AGTC’s most recent Annual Report on Form 10-K for the year ended June 30, 2020, Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and the preliminary prospectus supplement. AGTC cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this release, and AGTC undertakes no obligations to update or revise these statements, except as may be required by law.

About AGTC  
AGTC is a clinical-stage biotechnology company developing genetic therapies for people with rare and debilitating ophthalmic, otologic and central nervous system (CNS) diseases. AGTC is a leader in designing and constructing all critical gene therapy elements and bringing them together to develop customized therapies that address real patient needs. AGTC’s most advanced clinical programs leverage its best-in-class technology platform to potentially improve vision for patients with an inherited retinal disease. AGTC has active clinical trials in X-linked retinitis pigmentosa (XLRP) and achromatopsia (ACHM CNGB3 & ACHM CNGA3). Its preclinical programs build on the Company’s industry-leading AAV manufacturing technology and scientific expertise. AGTC is advancing multiple important pipeline candidates to address substantial unmet clinical need in optogenetics, otology and CNS disorders.

IR/PR CONTACTS:
David Carey (IR) or Glenn Silver (PR)
Lazar FINN Partners
T: (212) 867-1768 or (646) 871-8485
david.carey@finnpartners.com or glenn.silver@finnpartners.com

Corporate Contacts:
Bill Sullivan
Chief Financial Officer
Applied Genetic Technologies Corporation
T: (617) 843-5728
bsullivan@agtc.com

Stephen Potter
Chief Business Officer
Applied Genetic Technologies Corporation
T: (617) 413-2754
spotter@agtc.com

FAQ

What is the purpose of AGTC's stock offering announced on January 27, 2021?

AGTC intends to use the net proceeds from the offering to fund ongoing clinical trials in X-linked retinitis pigmentosa and achromatopsia.

Who is managing AGTC's public offering?

The public offering is managed by Stifel, Wells Fargo Securities, and MTS Health Partners.

Is there any risk associated with AGTC's proposed stock offering?

Yes, there are risks related to market conditions and the potential for shareholder dilution.

When was AGTC's stock offering announced?

The stock offering was announced on January 27, 2021.

What securities are being offered by AGTC in the public offering?

AGTC is offering shares of common stock and pre-funded warrants, along with accompanying warrants to purchase additional shares.