Allogene Therapeutics Announces Commencement of Public Offering of Common Stock

Rhea-AI Summary

Allogene Therapeutics (Nasdaq: ALLO) has announced a public offering of $450 million in common stock, with a potential additional $67.5 million in shares through underwriters' options. The offering is contingent upon market conditions and there is no guarantee of completion or specific terms. Goldman Sachs, Jefferies, and Cowen are managing the offering. This is part of a shelf registration that became effective on November 5, 2019. The funds raised are intended to support the development of AlloCAR T™ therapies, a novel approach to cancer treatment.

Positive

• The public offering aims to raise $450 million, potentially increasing to $517.5 million with underwriters' options.
• Funds raised will support the development of allogeneic CAR T cell therapies.

Negative

• The offering might lead to shareholder dilution if shares are issued at a lower price.

SOUTH SAN FRANCISCO, Calif., June 01, 2020 (GLOBE NEWSWIRE) -- Allogene Therapeutics, Inc. (Nasdaq: ALLO), today announced the commencement of an underwritten public offering of $450.0 million of shares of its common stock. In addition, Allogene expects to grant the underwriters a 30-day option to purchase up to an additional $67.5 million of shares of its common stock offered in the public offering. All of the shares of common stock to be sold in the offering will be sold by Allogene. The offering is subject to market and other 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.

Goldman Sachs & Co. LLC, Jefferies LLC and Cowen and Company, LLC are acting as joint book-running managers for the offering.

The securities described above are being offered by Allogene pursuant to a shelf registration statement (including a prospectus) filed on November 5, 2019 with the Securities and Exchange Commission (SEC), which has become automatically effective. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available for free on the SEC's website at http://www.sec.gov. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the offering, when available, may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, NY 10022, or by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com; or Cowen and Company, LLC, c/o Broadridge Financial Solutions, Attention: Prospectus Department, 1155 Long Island Avenue, Edgewood, NY 11717, Attention: Prospectus Department, or by telephone at (833) 297-2926, or by email at PostSaleManualRequests@broadridge.com.

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 registration or qualification under the securities laws of any such state or jurisdiction.

About Allogene Therapeutics
Allogene Therapeutics, with headquarters in South San Francisco, is a clinical-stage biotechnology company pioneering the development of allogeneic chimeric antigen receptor T cell (AlloCAR T™) therapies for cancer. Led by a management team with significant experience in cell therapy, Allogene is developing a pipeline of “off-the-shelf” CAR T cell therapy candidates with the goal of delivering readily available cell therapy on-demand, more reliably, and at greater scale to more patients.

Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The press release may, in some cases, use terms such as "predicts," "believes," "potential," "proposed," "continue," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements include statements regarding the size, completion and timing of the proposed public offering. Various factors may cause differences between Allogene’s expectations and actual results as discussed in greater detail in Allogene’s filings with the SEC, including without limitation in its Form 10-Q for the quarter ended March 31, 2020 filed on May 6, 2020.  Any forward-looking statements that are made in this press release speak only as of the date of this press release. Allogene assumes no obligation to update the forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

AlloCAR T™ is a trademark of Allogene Therapeutics, Inc.

Allogene Media/Investor Contact:
Christine Cassiano
Chief Communications Officer
(714) 552-0326
Christine.Cassiano@allogene.com

FAQ

What is the size of the public offering by Allogene Therapeutics?

Allogene Therapeutics is commencing a public offering of $450 million of its common stock.

Who is managing the public offering for Allogene?

Goldman Sachs, Jefferies, and Cowen are acting as joint book-running managers for the offering.

What are the potential risks associated with the public offering of Allogene?

The public offering could lead to shareholder dilution, particularly if new shares are issued at a lower price.

How much can the public offering increase with underwriters' options?

The underwriters have a 30-day option to purchase up to an additional $67.5 million of shares.