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

Rhea-AI Summary

CymaBay Therapeutics (Nasdaq: CBAY) has announced an underwritten public offering of common stock and pre-funded warrants, with a potential 15% additional option for underwriters. The offering is contingent on market conditions, and the company aims to use net proceeds for the development of seladelpar and general corporate purposes. Joint book-running managers for the offering include Piper Sandler, Raymond James, and Cantor Fitzgerald. CymaBay warns that actual results may vary due to market risks and uncertainties surrounding the offering.

Positive

• Intended use of funds includes ongoing development of seladelpar and market expansion.
• Potential for additional funding through a 30-day option for underwriters to purchase more shares.

Negative

• The offering may lead to shareholder dilution.
• Uncertainty regarding the completion of the offering and its terms.

NEWARK, Calif., Jan. 23, 2023 (GLOBE NEWSWIRE) -- CymaBay Therapeutics, Inc. (Nasdaq: CBAY), a clinical-stage biopharmaceutical company focused on developing therapies for liver and other chronic diseases with high unmet medical need, today announced that it has commenced an underwritten public offering of its common stock and pre-funded warrants. All shares of common stock and pre-funded warrants to be sold in the offering will be offered by CymaBay. CymaBay intends to grant the underwriters a 30-day option to purchase up to an aggregate of an additional 15% of the shares of its common stock offered in the public offering. 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. CymaBay anticipates using the net proceeds from the offering to fund ongoing development of seladelpar, including clinical trials targeting market expansion, and for working capital and general corporate purposes.

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

The securities described above are being offered by CymaBay pursuant to a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement related to the 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 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., Attention: Capital Markets, 499 Park Ave., 4th Floor, New York, New York 10022, or by e-mail 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. (Nasdaq: CBAY) is a clinical-stage biopharmaceutical company focused on improving the lives of people with liver and other chronic diseases that have high unmet medical need through a pipeline of innovative therapies.

Cautionary Statements

This announcement 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 market conditions and 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, 2022, filed with the SEC on November 14, 2022, and in the preliminary prospectus supplement related to the proposed offering to be filed with the SEC on or about January 23, 2023. 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 the purpose of CymaBay's public offering on January 23, 2023?

CymaBay's public offering aims to raise funds for the ongoing development of seladelpar and general corporate purposes.

What are the risks associated with CymaBay's public offering?

The risks include market conditions affecting the offering's completion and potential dilution of existing shares for current shareholders.

Who are the underwriters for CymaBay's offering?

The joint book-running managers for the offering are Piper Sandler, Raymond James, and Cantor Fitzgerald.

What is the size of the offering and the additional options for underwriters?

The offering consists of common stock and pre-funded warrants, with a 30-day option for underwriters to purchase an additional 15% of the shares.