Gritstone bio Announces Private Placement of $45.0 Million

Rhea-AI Summary

Gritstone bio, Inc. (Nasdaq: GRTS) announced a PIPE financing deal to sell 6,637,165 shares at $2.26 each and 13,274,923 pre-funded warrants at $2.2599, expected to generate approximately $45 million. The transaction, led by Redmile Group, is slated to close on October 27, 2022. Proceeds will support ongoing clinical development in oncology and infectious diseases. The securities are unregistered and require a registration statement with the SEC for resale. Gritstone aims to create potent vaccines leveraging innovative vectors for treating viral diseases and solid tumors.

Positive

• PIPE financing expected to raise approximately $45 million.
• Funds allocated to support ongoing clinical development of oncology and infectious disease programs.

Negative

• Sale of unregistered securities could lead to potential regulatory scrutiny.
• Reliance on PIPE financing may indicate challenges in raising funds through traditional means.

EMERYVILLE, Calif., Oct. 25, 2022 (GLOBE NEWSWIRE) -- Gritstone bio, Inc. (Nasdaq: GRTS), a clinical-stage biotechnology company that aims to develop the world’s most potent vaccines, today announced that it has executed a securities purchase agreement to sell, through a private investment in public equity (PIPE) financing, 6,637,165 shares of its common stock at a price of $2.26 per share of common stock and 13,274,923 pre-funded warrants to purchase up to 13,274,923 shares of common stock at a price of $2.2599 per pre-funded warrant for aggregate gross proceeds of approximately $45.0 million, before deducting placement agent fees and offering expenses. Each pre-funded warrant will have an exercise price of $0.0001 per share, will be exercisable immediately, and will be exercisable until exercised in full. The transaction is expected to close on October 27, 2022, subject to customary closing conditions. Gritstone intends to use the net proceeds from the PIPE financing to fund the ongoing clinical development of oncology and infectious disease programs and for general corporate purposes.

The financing is being led by Redmile Group, with participation from new and existing investors, including Gilead Sciences, Invus, Hercules Capital, Inc. (NYSE: HTGC), and two new large institutional investors.

The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the U.S. except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Gritstone has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock and shares of common stock issuable upon the exercise of the pre-funded warrants issued in this private placement.

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

About Gritstone bio
Gritstone bio, Inc. (Nasdaq: GRTS) is a clinical-stage biotechnology company that aims to create the world’s most potent vaccines. We leverage our innovative vectors and payloads to train multiple arms of the immune system to attack critical disease targets. Independently and with our collaborators, we are advancing a portfolio of product candidates to treat and prevent viral diseases and solid tumors in pursuit of improving patient outcomes and eliminating disease. www.gritstonebio.com

Gritstone Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to the timing and expectation of the closing of the PIPE financing and Gritstone's intended use of proceeds from the PIPE financing. Such forward-looking statements involve substantial risks and uncertainties that could cause Gritstone’s research and clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the drug development process, including Gritstone’s programs’ clinical stage of development, the process of designing and conducting preclinical and clinical trials, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, Gritstone’s ability to successfully establish, protect and defend its intellectual property and other matters that could affect the sufficiency of existing cash to fund operations. Gritstone undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see Gritstone’s most recent Annual Report on Form 10-K filed on March 10, 2022, as well as Gritstone’s Quarterly Reports on Form 10-Q filed on May 5, 2022 and August 4, 2022 and any current and periodic reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are based on information available to Gritstone as of the date hereof. Gritstone disclaims any obligation to update any forward-looking statements, except as required by law.

Gritstone Contacts
Investors:
George E. MacDougall
Director, Investor Relations & Corporate Communications
Gritstone bio
ir@gritstone.com

Media:
Dan Budwick
1AB
(973) 271-6085
dan@1abmedia.com

FAQ

What is Gritstone bio's PIPE financing announcement on October 25, 2022?

Gritstone bio announced a PIPE financing deal to sell shares and pre-funded warrants for approximately $45 million to support clinical development.

How much money is Gritstone bio expected to raise with the PIPE financing?

Gritstone bio expects to raise approximately $45 million from the PIPE financing.

Who are the investors participating in Gritstone bio's PIPE financing?

Investors include Redmile Group, Gilead Sciences, and Hercules Capital, among others.

When is the closing date for Gritstone bio's PIPE financing?

The transaction is expected to close on October 27, 2022.

What will Gritstone bio use the proceeds from the PIPE financing for?

The proceeds will fund ongoing clinical development for oncology and infectious disease programs and general corporate purposes.