HOOKIPA Pharma Announces Pricing of Public Offering of Common Stock and Preferred Stock

Rhea-AI Summary

HOOKIPA Pharma has announced a public offering of 3,400,000 shares of common stock priced at $11.75 each and 2,978 shares of Series A convertible preferred stock at $11,750 each, aiming to raise approximately $75 million. The offering is set to close on December 11, 2020. The underwriters have an option to purchase an additional 510,000 shares. The funds are intended for advancing its proprietary arenavirus platform targeting infectious diseases and cancers. This offering is made under a shelf registration statement with the SEC.

Positive

• Expected gross proceeds of approximately $75 million for business development.
• Advancement of proprietary arenavirus platform targeting infectious diseases and cancers.

Negative

• Potential dilution of existing shares due to the new offering.

NEW YORK and VIENNA, Austria, Dec. 08, 2020 (GLOBE NEWSWIRE) -- HOOKIPA Pharma Inc. (Nasdaq: HOOK), a company developing a new class of immunotherapeutics based on its proprietary arenavirus platform, today announced the pricing of an underwritten public offering of 3,400,000 shares of its common stock and 2,978 shares of its Series A convertible preferred stock (the “Offering”). The public offering price of each share of common stock is $11.75 and the public offering price of each share of Series A preferred stock is $11,750 (each share of Series A preferred stock is convertible into 1,000 shares of common stock). HOOKIPA has granted the underwriters a 30-day option to purchase up to an additional 510,000 shares of its common stock at the public offering price of the common stock, less underwriting discounts and commissions. The gross proceeds to HOOKIPA from this offering are expected to be approximately $75 million, before deducting underwriting discounts and commissions and other offering expenses and excluding any exercise of the underwriters’ option to purchase additional shares. All of the securities in the Offering are to be sold by HOOKIPA. The offering is expected to close on December 11, 2020, subject to customary closing conditions.

Morgan Stanley and SVB Leerink are acting as joint book-running managers of the Offering. RBC Capital Markets is acting as lead manager.

The securities described above are being offered by HOOKIPA pursuant to a shelf registration statement on Form S-3 (No. 333-238311), including a base prospectus filed with the Securities and Exchange Commission (the “SEC”), which was declared effective on May 27, 2020. A preliminary prospectus supplement has been filed with the SEC. A final prospectus supplement and accompanying prospectus relating to the Offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus may also be obtained, when available, from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; or email: prospectus@morganstanley.com or SVB Leerink LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, Massachusetts 02110; by telephone at (800) 808-7525, ext. 6132; or email: syndicate@svbleerink.com.

This press release shall not constitute an offer to sell or the 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 HOOKIPA Pharma
HOOKIPA Pharma Inc. (NASDAQ: HOOK) is a clinical stage biopharmaceutical company developing a new class of immunotherapeutics targeting infectious diseases and cancers based on its proprietary arenavirus platform that reprograms the body’s immune system.

Forward-Looking Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the completion of the proposed offering and the use of proceeds from the proposed offering. The use of words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “future,” “potential,” or “continue,” and other similar expressions are intended to identify such forward-looking statements. All such forward-looking statements are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, without limitation, uncertainties related to market conditions and the completion of Offering on the anticipated terms or at all and those risks more fully discussed in the section entitled "Risk Factors" in HOOKIPA’s annual report on Form 10-K for the fiscal year ended December 31, 2019 and its quarterly report on Form 10-Q for the quarter ended September 30, 2020, which are available at www.sec.gov, as well as discussions of potential risks, uncertainties, and other important factors in HOOKIPA’s subsequent filings with the Securities and Exchange Commission. Any forward-looking statements represent HOOKIPA’s views only as of today and should not be relied upon as representing its views as of any subsequent date. All information in this press release is as of the date of the release, and HOOKIPA undertakes no duty to update this information unless required by law.

For further information, please contact:

Media Nina Waibel Senior Director - Communications nina.waibel@hookipapharma.com

Investors Matt Beck Executive Director - Investor Relations matthew.beck@hookipapharma.com

FAQ

What is the public offering price for HOOK shares?

HOOKIPA's common stock is priced at $11.75 per share in the public offering.

How much money is HOOKIPA looking to raise through the offering?

HOOKIPA aims to raise approximately $75 million from the public offering.

What is the expected closing date for the HOOKIPA offering?

The offering is expected to close on December 11, 2020.

What type of securities is HOOKIPA offering?

HOOKIPA is offering common stock and Series A convertible preferred stock.

What will the proceeds of the offering be used for?

The proceeds will be used for advancing HOOKIPA's proprietary arenavirus platform.