Alector Announces Closing of Public Offering
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Insights
The recent public offering by Alector, Inc. represents a significant capital infusion for the company, raising approximately $75 million before expenses. This capital raise is a strategic move for Alector to bolster its financial position and fund ongoing research and development efforts, particularly in the field of immuno-neurology. The offering's success, indicated by the full utilization of available shares and the provision of an option for additional shares, reflects investor confidence in Alector's potential.
From a financial perspective, the influx of funds may lead to a positive reevaluation of Alector's stock by providing the necessary capital to advance its clinical trials and potentially bring new therapies to market. However, investors should be aware that public offerings can dilute existing shares, potentially impacting the stock's value per share in the short term. The long-term effects will largely depend on how effectively Alector utilizes the raised capital to achieve its strategic objectives.
Alector's focus on immuno-neurology, a field that addresses the immune system's role in neurological disorders, is particularly noteworthy. The fresh capital from the public offering is likely earmarked for advancing their pipeline of therapies, which could have significant implications for treating diseases like Alzheimer's and other neurodegenerative conditions. The successful closing of this offering suggests that the market sees potential in Alector's research direction and therapeutic candidates.
Investors should monitor the company's research milestones and clinical trial results closely, as these will be critical indicators of the company's ability to deliver on its promises and provide a return on investment. Furthermore, the regulatory pathway for new drugs in this field can be complex and lengthy, which could affect the timeline for any potential product commercialization.
The offering was conducted under a shelf registration statement, which allows companies to register securities and sell them in one or more separate offerings based on market conditions. This flexibility is a strategic tool for companies like Alector to tap into the market opportunistically. However, it is important for investors to review the prospectus supplement and accompanying prospectus for a detailed understanding of the offering's terms, the company's financials and the risks involved.
Compliance with SEC regulations, as evidenced by the effective registration statement and the availability of the prospectus on the SEC's website, is crucial for the legality and transparency of the offering. Investors should note that the sale of these securities is subject to both federal and state securities laws and any non-compliance could lead to legal challenges and impact investor confidence.
SOUTH SAN FRANCISCO, Calif., Jan. 19, 2024 (GLOBE NEWSWIRE) -- Alector, Inc. (Nasdaq: ALEC), a clinical-stage biotechnology company pioneering immuno-neurology, today announced the closing of its underwritten public offering of shares of its common stock. Alector sold 10,869,566 shares of its common stock in the offering. Alector has granted the underwriter a 30-day option to purchase up to an additional 1,630,434 shares of its common stock. The gross proceeds to Alector from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, are approximately
Cantor Fitzgerald & Co. acted as sole book-running manager for the offering.
The offering was made pursuant to a shelf registration statement on Form S-3 (File No. 333- 270126) that was previously filed with and subsequently declared effective by the Securities and Exchange Commission (“SEC”) on May 1, 2023. The offering was made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. The final prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s website at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained from: Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 10022, or by e-mail at prospectus@cantor.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, 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 Alector
Alector is a clinical-stage biotechnology company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegenerative diseases. Immuno-neurology targets immune dysfunction as a root cause of multiple pathologies that are drivers of degenerative brain disorders. Alector has discovered and is developing a broad portfolio of innate immune system programs, designed to functionally repair genetic mutations that cause dysfunction of the brain’s immune system and enable rejuvenated immune cells to counteract emerging brain pathologies. Alector’s immuno-neurology product candidates are supported by biomarkers and seek to treat indications, including Alzheimer’s disease and genetically defined frontotemporal dementia patient populations. Alector is headquartered in South San Francisco, California.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements regarding Alector’s expectations regarding the gross proceeds from the offering. Such statements are subject to numerous risks and uncertainties that may cause actual events or results to differ materially from current expectations and beliefs, including but not limited to risks and uncertainties related to market conditions and Alector and its business as set forth in Alector’s filings with the SEC, including the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, as well as the other documents Alector files from time to time with the SEC. These documents contain and identify important factors that could cause the actual results for Alector to differ materially from those contained in Alector’s forward-looking statements. Any forward-looking statements contained in this press release speak only as of the date hereof, and Alector specifically disclaims any obligation to update any forward-looking statement, except as required by law.
Alector Contacts:
Alector
Katie Hogan
202-549-0557
katie.hogan@alector.com
1AB (media)
Dan Budwick
973-271-6085
dan@1abmedia.com
Argot Partners (investors)
Laura Perry
212.600.1902
alector@argotpartners.com
FAQ
How many shares of common stock did Alector sell in the offering?
What are the gross proceeds to Alector from the offering?
Who acted as the sole book-running manager for the offering?
What is the 30-day option granted to the underwriter?
What type of registration statement was used for the offering?
Where can the final prospectus supplement and accompanying prospectus be obtained?
Is this press release an offer to sell or a solicitation of an offer to buy?
