BioXcel Therapeutics Announces Proposed Public Offering

Rhea-AI Summary

BioXcel Therapeutics, Inc. has announced an underwritten public offering of $60.0 million of shares of its common stock, with an option to purchase additional shares. The net proceeds will be used to fund ongoing and planned clinical trials, commercialization, and general corporate purposes. The offering is being made pursuant to a shelf registration statement on Form S-3 filed with the SEC. BofA Securities and Truist Securities are acting as joint book-running managers for the proposed public offering.

Insights

Financial Analyst

The initiation of a public offering by BioXcel Therapeutics represents a strategic move to raise capital, aiming to bolster its financial position for the advancement of its clinical trials and commercialization efforts. The substantial amount of $60 million, with an additional option for underwriters to purchase up to $9 million more, indicates an aggressive funding strategy that could significantly affect the company's cash reserves and dilute current shareholders' equity.

Analyzing the potential impact on the company's stock, investors should consider the dilution effect of additional shares on the market, which could lead to a temporary decrease in the stock price. However, the long-term effect of this capital raise could be positive if the funds are effectively utilized to advance clinical trials, leading to successful drug development and potential market share gain in the neuroscience and immuno-oncology sectors.

It is also noteworthy that the offering is being made pursuant to a shelf registration statement, which provides flexibility and speed in capital raising, indicating that the company is prepared to act quickly in response to favorable market conditions or strategic needs. As such, investor sentiment may be influenced by the company's readiness and strategic foresight.

Market Research Analyst

The biopharmaceutical sector is highly competitive, with success heavily dependent on the progression of clinical trials and the ability to bring innovative drugs to market. BioXcel Therapeutics' decision to raise funds through a public offering is a common approach within the industry to secure necessary capital for research and development (R&D) and commercialization without incurring debt.

From a market perspective, the company's focus on artificial intelligence approaches in developing medicines is of particular interest. This could indicate a competitive edge in efficiency and effectiveness in drug discovery and development processes, potentially leading to a more robust pipeline and quicker time-to-market for new therapies.

Investors and market observers will likely monitor the success of the offering and subsequent allocation of funds, as these will be critical in determining the company's ability to meet its clinical and commercial milestones, which in turn could influence its market valuation and investor confidence.

Medical Research Analyst

The utilization of proceeds from the public offering for ongoing and planned clinical trials is crucial for BioXcel Therapeutics, which operates in the high-stakes domains of neuroscience and immuno-oncology. The success of these trials is imperative for the company's future, as it dictates the ability to bring new therapies to market.

Given the complex nature of clinical trials, especially in these specialized fields, the capital infusion could support the company through various phases of research, including preclinical studies, human clinical trials and potential regulatory approval processes. The funding could also help in overcoming common industry hurdles such as patient recruitment, trial design and regulatory compliance.

Stakeholders will be interested in how this financial move translates into tangible R&D progress. The effectiveness of the company's AI-driven approach to drug development will be under scrutiny, as it promises to revolutionize the traditional R&D model by potentially reducing the time and cost associated with bringing new drugs to market.

NEW HAVEN, Conn., Feb. 08, 2024 (GLOBE NEWSWIRE) -- BioXcel Therapeutics, Inc. (the “Company”) (Nasdaq: BTAI), a biopharmaceutical company utilizing artificial intelligence approaches to develop transformative medicines in neuroscience and immuno-oncology, today announced that it has commenced an underwritten public offering of $60.0 million of shares of its common stock or, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase shares of its common stock. In addition, the Company expects to grant the underwriters a 30-day option to purchase up to $9.0 million of additional shares of common stock at the public offering price, less the underwriting discounts and commissions.

BofA Securities and Truist Securities are acting as joint book-running managers for the proposed public offering. The proposed public 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. All of the securities to be sold in the offering are being sold by the Company.

The Company intends to use the net proceeds of this offering to fund ongoing and planned clinical trials, commercialization and general corporate purposes.

The securities are being offered pursuant to a shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (the “SEC”) on November 2, 2023 and which became effective on November 13, 2023. This offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC. When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may also be obtained by contacting: BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon, Charlotte, NC 28255-0001, or by email at dg.prospectus_requests@bofa.com; Truist Securities, Inc., Attention: Prospectus Department, 3333 Peachtree Road NE, 9th floor, Atlanta, GA 30326, by telephone at (800) 685-4786, or by email at TruistSecurities.prospectus@Truist.com.

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

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact should be considered forward-looking statements, including, without limitation, those regarding the completion and size of the proposed public offering and the Company’s expectation with respect to granting a 30-day option to purchase additional shares of common stock at the public offering price, as well as the risks and uncertainties in the Company’s business, including those risks discussed in the “Risk Factors” section in the preliminary prospectus supplement relating to the offering. When used herein, words including “anticipate,” “believe,” “can,” “continue,” “could,” “designed,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. All forward-looking statements are based upon the Company’s current expectations and various assumptions. The Company believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. The Company may not realize its expectations, and its beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements as a result of various important factors, including, without limitation, the important factors discussed under the caption “Risk Factors” in its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023, as such factors may be updated from time to time in its other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While the Company may elect to update such forward-looking statements at some point in the future, except as required by law, it disclaims any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.

Contact Information

Corporate

BioXcel Therapeutics
Erik Kopp
1.203.494.7062
ekopp@bioxceltherapeutics.com

Investor Relations

BioXcel Therapeutics
Brennan Doyle
1.475.355.8462
bdoyle@bioxceltherapeutics.com

Media

Russo Partners
David Schull
T: 858-717-2310
David.Schull@russopartnersllc.com
Scott Stachowiak
T: 646-942-5630
Scott.Stachowiak@russopartnersllc.com

BT BIOXCEL THERAPEUTICS is a registered trademark of BioXcel Therapeutics, Inc.
All other trademarks are the properties of their respective owners.
Copyright © 2024, BioXcel Therapeutics, Inc. All rights reserved.

FAQ

What is BioXcel Therapeutics, Inc. announcing?

BioXcel Therapeutics, Inc. has announced an underwritten public offering of $60.0 million of shares of its common stock, with an option to purchase additional shares.

How will the net proceeds of the offering be used?

The net proceeds of the offering will be used to fund ongoing and planned clinical trials, commercialization, and general corporate purposes.

Who are the underwriters for the proposed public offering?

BofA Securities and Truist Securities are acting as joint book-running managers for the proposed public offering.

What type of registration statement was filed with the SEC?

The offering is being made pursuant to a shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (the 'SEC') on November 2, 2023.

Where can the preliminary prospectus supplement and the accompanying prospectus be obtained?

Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering may be obtained by contacting BofA Securities or Truist Securities.