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enGene Announces $60 Million Private Placement Financing

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enGene Holdings has announced a $60 million private placement financing through the sale of 6,758,311 common shares at $8.90 per share. The financing, expected to close on October 29, 2024, includes participation from notable investors like Deep Track Capital, Cormorant Asset Management, and OrbiMed. The proceeds will fund the development of detalimogene voraplasmid, their lead investigational product for bladder cancer treatment, pre-commercial activities, and platform expansion. Combined with current cash reserves, this funding is expected to sustain operations into 2027.

enGene Holdings ha annunciato un finanziamento tramite collocamento privato di 60 milioni di dollari attraverso la vendita di 6.758.311 azioni ordinarie a 8,90 dollari per azione. Si prevede che il finanziamento si chiuda il 29 ottobre 2024 e include la partecipazione di investitori di rilievo come Deep Track Capital, Cormorant Asset Management e OrbiMed. I proventi serviranno a finanziare lo sviluppo di detalimogene voraplasmid, il loro principale prodotto in fase di ricerca per il trattamento del cancro alla vescica, attività pre-commerciali e l'espansione della piattaforma. Combinato con le attuali riserve di liquidità, questo finanziamento è previsto per sostenere le operazioni fino al 2027.

enGene Holdings ha anunciado un financiamiento a través de una colocación privada de 60 millones de dólares mediante la venta de 6,758,311 acciones comunes a 8.90 dólares por acción. Se espera que el financiamiento se cierre el 29 de octubre de 2024, e incluye la participación de inversionistas destacados como Deep Track Capital, Cormorant Asset Management y OrbiMed. Los ingresos se destinarán al desarrollo de detalimogene voraplasmid, su principal producto en investigación para el tratamiento del cáncer de vejiga, actividades precomerciales y expansión de la plataforma. Junto con las reservas de efectivo actuales, se espera que este financiamiento mantenga las operaciones hasta 2027.

enGene Holdings6천만 달러 규모의 사모펀드 조달을 발표했습니다. 이는 6,758,311주를 주당 8.90달러에 판매하는 방식입니다. 이 자금 조달은 2024년 10월 29일에 마감될 예정이며, Deep Track Capital, Cormorant Asset Management, OrbiMed와 같은 저명한 투자자들이 참여합니다. 수익금은 방광암 치료를 위한 주요 임상 제품인 detalimogene voraplasmid의 개발, 상업화 전 활동 및 플랫폼 확장을 지원하는 데 사용됩니다. 현재 현금 보유와 함께 이 자금 조달은 2027년까지 운영을 지속할 것으로 예상됩니다.

enGene Holdings a annoncé un financement par placement privé de 60 millions de dollars grâce à la vente de 6 758 311 actions ordinaires au prix de 8,90 dollars par action. Le financement devrait être conclu le 29 octobre 2024 et comprend la participation d'investisseurs notables comme Deep Track Capital, Cormorant Asset Management et OrbiMed. Les fonds serviront à financer le développement de detalimogene voraplasmid, leur principal produit en cours d'investigation pour le traitement du cancer de la vessie, les activités pré-commerciales et l'expansion de la plateforme. Combiné aux réserves de liquidités actuelles, ce financement devrait soutenir les opérations jusqu'en 2027.

enGene Holdings hat eine Private Placement-Finanzierung in Höhe von 60 Millionen Dollar bekannt gegeben, durch den Verkauf von 6.758.311 Stammaktien zu einem Preis von 8,90 Dollar pro Aktie. Die Finanzierung soll am 29. Oktober 2024 abgeschlossen werden und umfasst die Teilnahme bedeutender Investoren wie Deep Track Capital, Cormorant Asset Management und OrbiMed. Die Erlöse werden zur Finanzierung der Entwicklung von detalimogene voraplasmid, ihrem Hauptforschungsprodukt zur Behandlung von Blasenkrebs, zu Vorcommercialisierungstätigkeiten und zur Plattformerweiterung verwendet. Zusammen mit den vorhandenen Barreserven wird dieser Zuschuss voraussichtlich die Geschäftstätigkeit bis 2027 aufrechterhalten.

Positive
  • Secured $60 million in private placement financing
  • Attracted investment from major healthcare investors
  • Extended cash runway into 2027
  • Strengthened financial position for product development and commercialization
Negative
  • Share dilution due to issuance of 6,758,311 new common shares

Insights

This $60 million private placement significantly strengthens enGene's financial position, extending their runway into 2027. The deal's pricing at $8.90 per share and participation from prominent healthcare investors like Deep Track Capital and OrbiMed validates market confidence in their pipeline. The financing provides important capital for their lead candidate detalimogene voraplasmid in BCG-unresponsive bladder cancer, supporting both clinical development and pre-commercial activities.

The involvement of multiple tier-1 healthcare investment firms and support from existing investors signals strong institutional backing. The extended cash runway provides operational flexibility and reduces near-term financing risk, allowing management to focus on clinical execution. The registration rights agreement for resale demonstrates a balanced approach to investor liquidity while maintaining orderly market dynamics.

BOSTON & MONTREAL--(BUSINESS WIRE)-- enGene Holdings Inc. (Nasdaq: ENGN or “enGene” or the “Company”), a clinical-stage genetic medicines company whose non-viral lead investigational product detalimogene voraplasmid (also known as detalimogene, and previously EG-70) is in an ongoing pivotal study in patients with high-risk, Bacillus Calmette-Guérin (BCG)-unresponsive, non-muscle invasive bladder cancer (NMIBC) with carcinoma in situ (Cis), today announced that it has agreed to sell 6,758,311 of its common shares at a price per share of $8.90. The financing is expected to close on October 29, 2024, subject to customary closing conditions. enGene anticipates the gross proceeds from the private placement to be approximately $60 million, before deducting any offering-related expenses.

The financing included participation from new and existing investors, including Deep Track Capital, Cormorant Asset Management, Forbion, OrbiMed, Sphera Healthcare, Vestal Point Capital and Venrock Healthcare Capital Partners.

enGene intends to use the net proceeds from this financing to fund the continued development of detalimogene, pre-commercial activities, the potential expansion of the DDX platform, and for working capital and general corporate purposes. The proceeds from this financing, combined with current cash and cash equivalents, are expected to be sufficient to fund the current operating plan into 2027.

Leerink Partners, Piper Sandler & Co., Guggenheim Securities and Wells Fargo Securities are acting as placement agents to the Company in connection with the private placement.

The securities described above have not been registered under the Securities Act of 1933, as amended. Accordingly, these securities may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act. enGene has agreed to file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) registering the resale of the common shares issued in this private placement. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.

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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About enGene

enGene is a clinical-stage biotechnology company mainstreaming genetic medicines through the delivery of therapeutics to mucosal tissues and other organs, with the goal of creating new ways to address diseases with high clinical needs. enGene’s lead program is detalimogene voraplasmid, (also known as detalimogene, and previously EG-70) for patients with Non-Muscle Invasive Bladder Cancer (NMIBC) – a disease with a high clinical burden. Detalimogene is being evaluated in the ongoing multi-cohort LEGEND Phase 2 study, which includes a pivotal cohort studying detalimogene in Bacillus Calmette Guérin (BCG)-unresponsive patients with carcinoma in situ (Cis). Detalimogene was developed using enGene’s proprietary Dually Derivatized Oligochitosan (DDX) platform, which enables penetration of mucosal tissues and delivery of a wide range of sizes and types of cargo, including DNA and various forms of RNA.

Forward-Looking Statements

Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and “forward-looking information” within the meaning of Canadian securities laws (collectively, “forward-looking statements”). enGene’s forward-looking statements include, but are not limited to, statements regarding enGene’s expectations, hopes, beliefs, intentions, goals, strategies, forecasts and projections. The words “anticipate”, “appear”, “approximate”, “believe”, “continue”, “could”, “estimate”, “expect”, “foresee”, “intend”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “seek”, “should”, “would”, and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include, for example, statements about: the timing and expectation of the closing of the private placement; the satisfaction of customary closing conditions related to the private placement and the anticipated use of proceeds therefrom; and the period over which enGene estimates the proceeds from the private placement, combined with its existing cash and cash equivalents, will be sufficient to fund its current operating plan.

Many factors, risks, uncertainties and assumptions could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, that preliminary clinical data may not accurately reflect the complete results of a particular study and remain subject to audit and verification, and final data may differ materially from preliminary data; the Company’s ability to recruit and retain qualified scientific and management personnel; establish clinical trial sites and enroll patients in its clinical trials; execute on the Company’s clinical development plans and ability to secure regulatory approval on anticipated timelines; and other risks and uncertainties detailed in filings with Canadian securities regulators on SEDAR+ and with the U.S. Securities and Exchange Commission (“SEC”) on EDGAR, including those described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2023 and most recent Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2024 (copies of which may be obtained at www.sedarplus.ca or www.sec.gov).

You should not place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. enGene anticipates that subsequent events and developments will cause enGene’s assessments to change. While enGene may elect to update these forward-looking statements at some point in the future, enGene specifically disclaims any obligation to do so, unless required by applicable law. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved.

For media contact: media@engene.com

For investor contact: investors@engene.com

Source: enGene Holdings Inc.

FAQ

How much did enGene (ENGN) raise in its private placement financing?

enGene raised $60 million through the private placement of 6,758,311 common shares at $8.90 per share.

What will enGene (ENGN) use the private placement proceeds for?

The proceeds will fund detalimogene development, pre-commercial activities, DDX platform expansion, and working capital needs.

How long will enGene's (ENGN) current funding last?

The financing, combined with existing cash reserves, is expected to fund operations into 2027.

Who are the major investors in enGene's (ENGN) private placement?

Major investors include Deep Track Capital, Cormorant Asset Management, Forbion, OrbiMed, Sphera Healthcare, Vestal Point Capital, and Venrock Healthcare Capital Partners.

enGene Holdings Inc.

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Biotechnology
Biological Products, (no Disgnostic Substances)
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