Humanigen Announces Closing of Public Offering of Common Stock

Rhea-AI Summary

Humanigen, Inc. (Nasdaq:HGEN) has successfully completed its underwritten public offering, raising approximately $72.8 million through the sale of 9.2 million shares, including 1.2 million shares from the over-allotment option. The funds will be used for the manufacturing and commercial preparation of lenzilumab, aimed at treating COVID-19 patients, along with general corporate purposes. The offering was conducted via a shelf registration statement declared effective by the SEC. Major financial institutions involved include J.P. Morgan and Jefferies.

Positive

• Raised approximately $72.8 million in net proceeds.
• Funds will support manufacturing and commercial preparation of lenzilumab for COVID-19.
• Successful exercise of the underwriters' over-allotment option for additional shares.

Negative

• Dilution risk for existing shareholders due to the issuance of new common stock.

BURLINGAME, CA / ACCESSWIRE / September 22, 2020 / Humanigen, Inc. (Nasdaq:HGEN), a clinical stage biopharmaceutical company focused on preventing and treating an immune hyper-response called ‘cytokine storm' with its lead drug candidate lenzilumab™, announced today that it has completed its previously announced underwritten public offering of common stock. Humanigen raised net proceeds of approximately $72.8 million from the sale of 9,200,000 shares in the offering, including 1,200,000 shares sold upon the full exercise by the underwriters of their over-allotment option, after deducting the underwriting discounts and commissions and estimated offering costs.

J.P. Morgan and Jefferies acted as joint book-running managers for the offering. Bryan, Garnier & Co. acted as the European lead manager and National Securities Corporation, Roth Capital Partners and H.C. Wainwright & Co. acted as co-managers for the offering.

Humanigen intends to use the net proceeds from the offering to support its manufacturing, production and commercial preparation activities relating to lenzilumab as a potential therapy for COVID-19 patients and for general corporate purposes.

The shares were offered by Humanigen pursuant to a shelf registration statement (including a prospectus) on Form S-3 that was previously filed with and declared effective by the U.S. Securities and Exchange Commission ("SEC"). The offering was made only by means of the written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and a final prospectus supplement relating to and describing the terms of the offering were filed with the SEC on September 15, 2020 and September 18, 2020, respectively, and are available on the SEC's website at www.sec.gov.

Copies of the final prospectus supplement and accompanying prospectus relating to the offering may also be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 Telephone: 866-803-9204 Email: prospectus-eq_fi@jpmorganchase.com; or Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by e-mail at prospectus_department@jefferies.com or by telephone at (877) 821-7388.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any 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.

Forward-Looking Statements

This release contains forward-looking statements. Forward-looking statements reflect management's current knowledge, assumptions, judgment and expectations regarding future performance or events. Although management believes that the expectations reflected in such statements are reasonable, they give no assurance that such expectations will prove to be correct and you should be aware that actual events or results may differ materially from those contained in the forward-looking statements. Words such as "will," "expect," "intend," "plan," "potential," "possible," "goals," "accelerate," "continue," and similar expressions identify forward-looking statements, including, without limitation, statements regarding the contemplated use of proceeds. Forward-looking statements are subject to a number of risks and uncertainties including, but not limited to, the various risks and uncertainties described in the "Risk Factors" sections and elsewhere in the Company's periodic and other filings with the Securities and Exchange Commission.

All forward-looking statements are expressly qualified in their entirety by this cautionary notice. You should not place undue reliance on any forward-looking statements, which speak only as of the date of this release. We undertake no obligation to revise or update any forward-looking statements made in this press release to reflect events or circumstances after the date hereof or to reflect new information or the occurrence of unanticipated events, except as required by law.

CONTACTS:

Media

Sean Leous
Westwicke, an ICR company
sean.leous@westwicke.com
646-866-4012

Investors

Victoria Meissner, MD
Westwicke, an ICR company
victoria.meissner@westwicke.com
646-677-1837

SOURCE: Humanigen, Inc.

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https://www.accesswire.com/607304/Humanigen-Announces-Closing-of-Public-Offering-of-Common-Stock

FAQ

What was the purpose of Humanigen's public offering?

The offering aimed to raise funds for the manufacturing and commercial preparation of lenzilumab and for general corporate purposes.

How much did Humanigen raise in their recent offering?

Humanigen raised net proceeds of approximately $72.8 million from the sale of 9.2 million shares.

What is the significance of lenzilumab for Humanigen?

Lenzilumab is Humanigen's lead drug candidate aimed at treating cytokine storms in COVID-19 patients.

Who managed Humanigen's public offering?

The offering was managed by J.P. Morgan and Jefferies as joint book-running managers.

What are the risks involved with the recent public offering from Humanigen?

The main risk includes the dilution of existing shareholder equity due to the issuance of new shares.