Perspective Therapeutics Announces Proposed Public Offering

Rhea-AI Summary

Perspective Therapeutics, Inc. has announced the commencement of an underwritten public offering of shares of its common stock and pre-funded warrants to purchase shares of its common stock. The company also intends to sell shares to Lantheus Alpha Therapy, LLC in a previously announced private placement. The net proceeds from the offerings will be used for general corporate purposes, including research and development, preclinical study and clinical trial expenditures, manufacturing expenditures, commercialization expenditures, working capital, capital expenditures, acquisitions of new technologies, products or businesses, and investments.

Insights

Financial Analyst

The initiation of an underwritten public offering and concurrent private placement by Perspective Therapeutics represents a pivotal financial event for the company. The decision to issue pre-funded warrants alongside common stock is a strategic move to attract a broader range of investors, particularly those who may prefer a lower upfront investment with the potential for future equity. The warrants' exercise price being set at a nominal $0.001 indicates a confidence in the stock's value and a possible incentive for investors to convert their warrants into common stock.

The involvement of Lantheus Alpha Therapy, LLC acquiring a 19.99% stake in Perspective is a significant endorsement of the company's potential. This investment threshold is notable because it stays just below the 20% mark, which could trigger additional regulatory scrutiny or shareholder approval requirements. The acquisition price being equal to the public offering price suggests a fair valuation of the company's shares without preferential treatment to private investors, which could be reassuring for public investors considering participation in the offering.

Furthermore, the use of net proceeds for a broad range of corporate activities, including research and development and potential acquisitions, indicates a growth-oriented strategy. However, this also means that the funds are not earmarked for any specific project, which could be a point of concern for investors seeking a more focused application of capital. The involvement of established financial institutions as joint book-running managers could be seen as a positive signal regarding the handling and potential success of the offering.

Market Research Analyst

From a market perspective, Perspective Therapeutics' public offering and private placement must be analyzed in the context of the current radiopharmaceutical industry and broader market conditions. Radiopharmaceuticals are a growing field within oncology treatments and successful capital raises by companies like Perspective could be indicative of investor optimism in this sector. The timing of the offering, however, is subject to market conditions, which could reflect investor sentiment and the overall appetite for biotech investments.

The 15% additional shares option for underwriters is a common practice known as a 'green shoe' option. It provides a mechanism for price stabilization post-offering. If the underwriters exercise this option, it could indicate strong demand for Perspective's shares, whereas a decision not to exercise could suggest the opposite.

The company's decision to allocate funds broadly across various corporate activities could be seen as an attempt to bolster its position in the competitive landscape through advancements in research, potential strategic acquisitions and scaling up manufacturing capabilities. Investors and analysts will likely monitor the deployment of the raised capital closely to assess the company's growth trajectory and return on investment.

Legal Expert

Legally, the structure of the public offering and private placement by Perspective Therapeutics adheres to the regulatory framework set by the Securities and Exchange Commission (SEC). The use of a shelf registration statement allows the company to efficiently execute the offering without the need for a new registration for each issuance. This strategy demonstrates Perspective's preparedness and flexibility in capital raising.

The private placement to Lantheus is structured to comply with the Securities Act's exemption requirements, which enables a quicker and potentially less costly transaction compared to a registered offering. However, the shares sold in the private placement are restricted securities and are subject to resale limitations. This could impact the liquidity of those shares and is a consideration for both the company and the private investor.

It is also important to note that the press release explicitly states that it does not constitute an offer to sell or a solicitation of an offer to buy securities. This disclaimer is standard practice to comply with the SEC's regulations on offering communications and to avoid potential legal repercussions associated with premature sale offers.

SEATTLE, Jan. 17, 2024 (GLOBE NEWSWIRE) -- Perspective Therapeutics, Inc. (“Perspective” or the “Company”) (NYSE AMERICAN: CATX), a radiopharmaceutical company that is pioneering advanced treatment applications for cancers throughout the body, today announced that it has commenced an underwritten public offering of shares of its common stock, and, to certain investors in lieu of common stock, pre-funded warrants to purchase shares of its common stock. The purchase price of each pre-funded warrant will equal the price per share at which shares of common stock are being sold to the public in this offering, minus $0.001, which will be the per share exercise price of each pre-funded warrant. In addition, Perspective intends to grant the underwriters an option for a period of 30 days to purchase up to an additional 15% of the shares of its common stock sold in the public offering at the public offering price, less underwriting discounts and commissions. All of the securities to be sold in the public offering are being offered by Perspective.

Concurrent with the public offering, Perspective intends to sell, subject to the consummation of the proposed public offering and satisfaction of other customary closing conditions, in a previously announced private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), 56,342,355 shares of its common stock to Lantheus Alpha Therapy, LLC (“Lantheus”), representing 19.99% of the number of shares of common stock that were outstanding as of January 8, 2024. The shares are expected to be sold to Lantheus at a price per share equal to the public offering price.

Oppenheimer & Co. and B. Riley Securities are acting as joint book-running managers for the public offering.

The proposed public offering and concurrent private placement are subject to market conditions and there can be no assurance as to whether or when the offerings may be completed, or as to the actual size or terms of the public offering or concurrent private placement.

Perspective intends to use the net proceeds that it will receive from the public offering and concurrent private placement for general corporate purposes, which may include research and development expenditures, preclinical study and clinical trial expenditures, manufacturing expenditures, commercialization expenditures, working capital, capital expenditures, acquisitions of new technologies, products or businesses and investments.

The securities described above in the public offering are being offered by Perspective pursuant to a shelf registration statement on Form S-3 (File No. 333-275638) initially filed with the Securities and Exchange Commission (the “SEC”) on November 17, 2023 and declared effective by the SEC on December 14, 2023.

The securities in the proposed public offering will be offered by means of a prospectus supplement and accompanying prospectus relating to the public offering that form a part of the registration statement. A preliminary prospectus supplement and the accompanying prospectus relating to and describing the terms of the public offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement, when available, and accompanying prospectus relating to the public offering may be obtained from Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, or by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com, or from B. Riley Securities, Inc., Attention: Prospectus Department, 1300 17th Street North, Suite 1300, Arlington, Virginia 22209, Phone: (703) 312-9580, Email: prospectuses@brileyfin.com.

The shares to be sold in the concurrent private placement have not been registered under the Securities Act, or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 Perspective Therapeutics, Inc.

Perspective Therapeutics, Inc., is a radiopharmaceutical company that is pioneering advanced treatment applications for cancers throughout the body. The Company has a proprietary technology that utilizes the alpha emitting isotope Lead-212 to deliver powerful radiation specifically to cancer cells via specialized targeting peptides. The Company is also developing complementary imaging diagnostics that incorporate the same targeting peptides which provide the opportunity to personalize treatment and optimize patient outcomes. This “theranostic” approach enables the ability to see the specific tumor and then treat it to potentially improve efficacy and minimize toxicity associated with many other types of cancer treatments.

The Company’s melanoma (VMT01) and neuroendocrine tumor (VMT-α-NET) programs have entered Phase 1/2a imaging and therapy trials for the treatment of metastatic melanoma and neuroendocrine tumors at several leading academic institutions in the United States. The Company has also developed a proprietary Lead-212 generator to secure key isotopes for clinical trial and commercial operations.

SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION ACT OF 1995: To the extent any statements made in this press release deal with information that is not historical, these are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding the timing and success of the proposed public offering and concurrent private placement, as well as the anticipated use of proceeds for the proposed public offering and concurrent private placement and other statements identified by words such as “will,” “potential,” “could,” “can,” “believe,” “intends,” “continue,” “plans,” “expects,” “anticipates,” “estimates,” “may,” other words of similar meaning or the use of future dates. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Uncertainties and risks may cause Perspective’s actual results to be materially different than those expressed in or implied by Perspective’s forward-looking statements. For Perspective, this includes satisfaction of the customary closing conditions of the public offering and concurrent private placement, delays in obtaining required stock exchange or other regulatory approvals, stock price volatility and uncertainties relating to the financial markets, the medical community and the global economy, and the impact of instability in general business and economic conditions, including changes in inflation, interest rates and the labor market. More detailed information on these and additional factors that could affect Perspective’s actual results are described in Perspective’s filings with the SEC, including its Transition Report on Form 10-KT for the transition period ended December 31, 2022, as revised or supplemented by its Quarterly Reports on Form 10-Q and other documents filed with the SEC. All forward-looking statements in this news release speak only as of the date of this news release. Perspective undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

FAQ

What did Perspective Therapeutics, Inc. announce?

Perspective Therapeutics, Inc. announced the commencement of an underwritten public offering of shares of its common stock and pre-funded warrants to purchase shares of its common stock.

What is the ticker symbol for Perspective Therapeutics, Inc.?

The ticker symbol for Perspective Therapeutics, Inc. is CATX.

How does the company intend to use the net proceeds from the offerings?

The net proceeds from the offerings will be used for general corporate purposes, including research and development, preclinical study and clinical trial expenditures, manufacturing expenditures, commercialization expenditures, working capital, capital expenditures, acquisitions of new technologies, products or businesses, and investments.

Who are the joint book-running managers for the public offering?

The joint book-running managers for the public offering are Oppenheimer & Co. and B. Riley Securities.

What is the percentage of shares being sold to Lantheus Alpha Therapy, LLC in the private placement?

Perspective Therapeutics, Inc. intends to sell 19.99% of the number of shares of common stock that were outstanding as of January 8, 2024 to Lantheus Alpha Therapy, LLC in the private placement.