CymaBay Announces Pricing of Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

CymaBay Therapeutics, Inc. (Nasdaq: CBAY) announced the pricing of its public offering, selling 15,625,000 shares of common stock at $4.00 each and pre-funded warrants at $3.9999 each for a gross total of approximately $75 million. Proceeds will be used for the development of seladelpar and general corporate purposes. The offering is set to close on November 22, 2021, pending customary closing conditions. Piper Sandler, Raymond James, and Cantor are managing the offering, with a 30-day option for underwriters to purchase an additional 2,812,500 shares.

Positive

• Gross proceeds of approximately $75 million expected from the offering.
• Funds will support ongoing development of seladelpar and corporate needs.
• Strong interest indicated by the underwriters' option for additional shares.

Negative

• Potential dilution of existing shareholders due to new share issuance.
• Market may react negatively to additional shares being offered.

NEWARK, Calif., Nov. 18, 2021 (GLOBE NEWSWIRE) -- CymaBay Therapeutics, Inc. (Nasdaq: CBAY), a clinical-stage biopharmaceutical company focused on developing and providing access to innovative therapies for patients with liver and other chronic diseases with high unmet medical need, today announced the pricing of its previously announced underwritten public offering of common stock and pre-funded warrants. CymaBay is selling 15,625,000 shares of common stock and pre-funded warrants to purchase 3,125,000 shares of common stock in the offering. The shares of common stock are being sold at a public offering price of $4.00 per share, and the pre-funded warrants are being sold at a public offering price of $3.9999 per underlying share. The gross offering proceeds to CymaBay from this offering are expected to be approximately $75 million, before deducting the underwriting discount and other estimated offering expenses, and excluding the exercise of any pre-funded warrants. All shares of common stock and pre-funded warrants to be sold in the offering will be offered by CymaBay. CymaBay has granted the underwriters a 30-day option to purchase up to an additional 2,812,500 shares of its common stock at the public offering price per share less underwriting discounts and commissions. CymaBay anticipates using the net proceeds from the offering to fund ongoing development of seladelpar and for working capital and general corporate purposes.

The offering is expected to close on November 22, 2021, subject to the satisfaction of customary closing conditions.

Piper Sandler, Raymond James and Cantor are acting as the joint book-running managers for the offering. LifeSci Capital and JonesTrading are acting as co-managers for the offering.

The securities described above are being offered by CymaBay pursuant to a shelf registration statement filed with the Securities and Exchange Commission (the "SEC") on July 2, 2020, which became effective on July 13, 2020. A preliminary prospectus supplement and accompanying prospectus related to the offering has been filed, and a final prospectus supplement and accompanying prospectus related to the offering will be filed, with the SEC and are or will be available on the SEC's website at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, from: Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, Minnesota 55402, by telephone at 800-747-3924, or by email at prospectus@psc.com; Raymond James & Associates, Inc., Attention: Equity Syndicate, 880 Carillon Parkway, St. Petersburg, Florida 33716, by telephone at (800) 248-8863, or by e-mail at prospectus@raymondjames.com; or Cantor Fitzgerald & Co., Attn: Capital Markets, 499 Park Ave., 6th Floor, New York, New York 10022, or by email at prospectus@cantor.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 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 CymaBay

CymaBay Therapeutics, Inc. (CBAY) is a clinical-stage biopharmaceutical company focused on developing and providing access to innovative therapies for patients with liver and other chronic diseases with high unmet medical need.

Cautionary Statements

This press release contains forward-looking statements, including statements relating to CymaBay’s expectations regarding the timing of the proposed public offering and anticipated use of proceeds. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. CymaBay cautions investors not to place undue reliance on the forward-looking statements contained in this release. These risks and uncertainties include, without limitation, risks and uncertainties related to the satisfaction of customary closing conditions related to the public offering. There can be no assurance that CymaBay will be able to complete the public offering on the anticipated terms, or at all. Risks and uncertainties relating to CymaBay and its business can be found in the “Risk Factors” section of CymaBay’s Form 10-Q for the quarter ended September 30, 2021, filed with the SEC on November 10, 2021, and in the preliminary prospectus supplement related to the proposed offering filed with the SEC on November 17, 2021. CymaBay undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in CymaBay’s expectations.

Public Relations Contact:

Glenn Silver
Lazar-FINN Partners
(973) 818-8198
Glenn.silver@finnpartners.com

Investor Relations Contact:
Hans Vitzthum
LifeSci Advisors, LLC
(617) 430-7578
Hans@LifeSciAdvisors.com

 

FAQ

What is CymaBay's stock symbol and what is the purpose of the recent offering?

CymaBay's stock symbol is CBAY. The recent offering aims to raise funds for the development of seladelpar and for general corporate purposes.

How many shares is CymaBay offering in the public offering?

CymaBay is offering 15,625,000 shares of common stock and pre-funded warrants to purchase 3,125,000 shares.

What is the expected closing date for CymaBay's public offering?

The expected closing date for the public offering is November 22, 2021.

What are the public offering prices for CymaBay's shares and warrants?

The common stock is priced at $4.00 per share, and the pre-funded warrants are priced at $3.9999 per underlying share.

Who are the underwriters managing CymaBay's offering?

The offering is being managed by Piper Sandler, Raymond James, and Cantor, with LifeSci Capital and JonesTrading as co-managers.