Dyne Therapeutics Announces Proposed Public Offering of Common Stock
Dyne Therapeutics has announced an underwritten public offering of $300,000,000 worth of common stock. Additionally, the company may grant underwriters a 30-day option to purchase up to $45,000,000 of additional shares.
Morgan Stanley, Jefferies, Stifel, and Guggenheim Securities are managing the offering, with Oppenheimer & Co. and Raymond James acting as co-managers. The offering's completion is subject to market conditions, and no assurance is given regarding the size or terms.
This offering is based on a shelf registration statement filed with the SEC on March 5, 2024, which became effective upon filing. The terms will be disclosed in a final prospectus supplement to be filed with the SEC.
- Dyne Therapeutics is raising $300,000,000 in a public stock offering.
- Underwriters have a 30-day option to purchase an additional $45,000,000 in shares.
- Morgan Stanley, Jefferies, Stifel, and Guggenheim Securities are managing the offering, indicating strong institutional support.
- The proposed offering is subject to market conditions, making its completion uncertain.
- The offering could lead to shareholder dilution.
- The terms of the offering are not yet finalized, adding another layer of uncertainty.
Insights
Dyne Therapeutics' announcement of a
From a financial perspective, retail investors should consider this move's broader implications. On the positive side, the additional funds may accelerate Dyne's clinical trials and bring its therapeutics closer to market, potentially enhancing long-term value. Conversely, the increased number of shares can reduce earnings per share (EPS) and potentially lower the stock price in the short term if market demand doesn't absorb the new supply effectively.
Given the joint book-running managers' calibre—Morgan Stanley, Jefferies, Stifel and Guggenheim Securities—it suggests a strong backing and confidence in the offering's success. However, investors should be wary of the overall market conditions, which can heavily influence the offering's success and impact on stock prices.
This public offering comes at a critical juncture for Dyne Therapeutics, as it continues to progress through clinical trials. Investors need to consider the broader market dynamics, including the current appetite for biotech stocks and the overall economic climate. Recently, the biotech sector has faced volatility, influenced by broader market trends and sector-specific challenges such as regulatory hurdles and fluctuating investor sentiment.
For Dyne, the successful completion of this offering could position the company more robustly against competitors and provide a cushion against any unforeseen costs associated with the development pipeline. However, market conditions are unpredictable and should the offering coincide with a market downturn or sector-specific issues, it might struggle to attract sufficient demand, leading to potential underperformance in share price.
The offering's scale—
Dyne Therapeutics' public offering is conducted under a shelf registration statement filed with the SEC, which allows the company to register a securities offering up to three years in advance and then sell them when market conditions are favorable. This regulatory pathway provides flexibility and can be a strategic tool for companies planning future financing. However, the completion of the offering is subject to market conditions and other factors, introducing an element of uncertainty for investors.
Retail investors should note that the terms of the offering will only be finalized upon the filing of the final prospectus supplement with the SEC. Until then, details on pricing, number of shares and underwriters' discount remain speculative. The involvement of multiple well-known financial institutions typically provides a layer of credibility and suggests thorough legal and financial vetting.
Understanding the legal framework and potential regulatory hurdles is crucial. The Securities Act of 1933 mandates that such offerings comply with strict disclosure requirements to protect investors. Thus, the forthcoming prospectus supplement will be a critical document for retail investors, providing essential details about the offering and associated risks.
WALTHAM, Mass., May 20, 2024 (GLOBE NEWSWIRE) -- Dyne Therapeutics, Inc. (Nasdaq: DYN), a clinical-stage muscle disease company focused on advancing innovative life-transforming therapeutics for people living with genetically driven diseases, today announced that it has commenced an underwritten public offering of
Morgan Stanley, Jefferies, Stifel and Guggenheim Securities are acting as joint book-running managers for the offering. Oppenheimer & Co. and Raymond James are acting as co-managers for the offering. The proposed 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.
The proposed offering is being made pursuant to a shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (“SEC”) on March 5, 2024 and became automatically effective upon filing. This offering will be made only by means of a prospectus supplement and accompanying prospectus that form a part of the registration statement. A preliminary prospectus supplement relating to and describing the terms of the offering is expected to be filed with the SEC and, if and when filed, copies of the preliminary prospectus supplement relating to the offering may be obtained for free by visiting the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus may also be obtained by contacting: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com; Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com; or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.
This press release shall not constitute an offer to sell, or a 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 Dyne Therapeutics
Dyne Therapeutics is a clinical-stage muscle disease company focused on advancing innovative life-transforming therapeutics for people living with genetically driven diseases. With its proprietary FORCE™ platform, Dyne is developing modern oligonucleotide therapeutics that are designed to overcome limitations in delivery to muscle tissue. Dyne has a broad pipeline for serious muscle diseases, including clinical programs for myotonic dystrophy type 1 (DM1) and Duchenne muscular dystrophy (DMD) and a preclinical program for facioscapulohumeral muscular dystrophy (FSHD).
Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release, including statements relating to the proposed underwritten public offering, the anticipated terms of the proposed offering, market and other conditions relating to the offering, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “predict,” “project,” “potential,” “should,” or “would,” or the negative of these terms, or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Dyne may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all and other factors discussed in the “Risk Factors” section of the preliminary prospectus supplement to be filed with the SEC, as well as the risks and uncertainties identified in Dyne’s filings with the SEC, including Dyne’s most recent Form 10-Q and in subsequent filings Dyne may make with the SEC. In addition, the forward-looking statements included in this press release represent Dyne’s views as of the date of this press release. Dyne anticipates that subsequent events and developments will cause its views to change. However, while Dyne may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Dyne’s views as of any date subsequent to the date of this press release.
Contacts:
Investors
Amy Reilly
areilly@dyne-tx.com
857-341-1203
Media
Stacy Nartker
snartker@dyne-tx.com
781-317-1938
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