Humacyte Announces Pricing of $30.0 Million Registered Direct Offering

Rhea-AI Summary

Humacyte, Inc. (Nasdaq: HUMA), a clinical-stage biotechnology platform company, has announced a $30.0 million registered direct offering of common stock and warrants. The company will sell 5,681,820 shares of common stock and warrants to purchase an equal number of shares. The warrants are divided into two tranches, both with an exercise price of $5.28 per share, expiring at different intervals. The purchase price for one share and one warrant is set at $5.28. The offering is expected to close around October 7, 2024, subject to customary conditions. EF Hutton is acting as the exclusive placement agent for this offering, which is being made under a previously filed and effective shelf registration statement.

Positive

• Secured $30.0 million in gross proceeds through a registered direct offering
• Offering includes both common stock and warrants, providing flexibility for investors
• Warrants have an exercise price of $5.28, potentially bringing in additional capital if exercised

Negative

• Potential dilution of existing shareholders' ownership
• The offering price of $5.28 may represent a discount to the current market price
• Short-term expiration of half the warrants (6 months) may create selling pressure

Insights

Financial Analyst

This registered direct offering is a significant financial move for Humacyte, raising $30 million in gross proceeds. The structure of the deal, combining common stock and warrants, provides immediate capital while also offering potential future funding through warrant exercises. The pricing at $5.28 per share and warrant represents a 4.5% discount to the previous closing price, which is relatively modest for this type of offering.

The inclusion of short-term (6-month) and longer-term (4.5-year) warrants adds complexity to the deal. If all warrants are exercised, it could bring in an additional $30 million, doubling the initial raise. However, this would also result in significant dilution, potentially impacting existing shareholders.

For a company with a market cap of $656.8 million, this raise represents about 4.6% of its current value. While it bolsters Humacyte's cash position, investors should consider the dilutive effect and the company's burn rate to assess the long-term impact on share value.

Biotechnology Expert

Humacyte's focus on bioengineered human tissue at commercial scale positions it in a cutting-edge area of biotechnology. This funding round is important for clinical-stage companies like Humacyte to advance their research and development efforts. The $30 million raised could potentially accelerate their progress towards commercialization of their universally implantable tissue products.

However, the need for additional funding at this stage may indicate that the company is still some distance from bringing products to market. Investors should closely monitor upcoming clinical trial results and regulatory milestones to gauge the company's progress. The success of Humacyte's platform technology could have far-reaching implications for regenerative medicine and tissue engineering, but it's important to remember that the path to market for such innovative technologies is often long and uncertain.

The involvement of EF Hutton as the placement agent lends some credibility to the offering, but potential investors should conduct thorough due diligence on Humacyte's technology, pipeline and competitive landscape before making investment decisions.

DURHAM, N.C., Oct. 04, 2024 (GLOBE NEWSWIRE) -- Humacyte, Inc. (Nasdaq: HUMA), a clinical-stage biotechnology platform company developing universally implantable, bioengineered human tissue at commercial scale, today announced that it entered into a securities purchase agreement with an institutional investor to purchase approximately $30.0 million worth of its common stock and warrants in a registered direct offering.

Under the terms of the securities purchase agreement, the Company has agreed to sell 5,681,820 shares of its common stock and warrants to purchase 5,681,820 shares of common stock. 2,840,910 warrants will be exercisable immediately, have an exercise price of $5.28 per share, and will expire six months from the initial exercise date. The additional 2,840,910 warrants will be exercisable immediately, have an exercise price of $5.28 per share, and will expire four and a half years from the initial exercise date. The purchase price for one share of common stock and one warrant will be $5.28.

The gross proceeds to the Company from the registered direct offering are estimated to be approximately $30.0 million, before deducting the placement agent’s fees and other estimated offering expenses. The offering is expected to close on or about October 7, 2024, subject to the satisfaction of customary closing conditions.

EF Hutton LLC is acting as exclusive placement agent for the offering.

The proposed offering of the common stock and warrants described above is being offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333-267225) filed with the Securities and Exchange Commission (SEC) and declared effective by the SEC on September 9, 2022, and the accompanying prospectus contained therein.

The offering is being made only by means of a prospectus supplement and accompanying prospectus. A prospectus supplement describing the terms of the public offering will be filed with the SEC and will form a part of the effective registration statement.

Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, on the SEC’s website at http://www.sec.gov or by contacting EF Hutton LLC Attention: Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, by email at syndicate@efhutton.com, or by telephone at (212) 404-7002.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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 Humacyte

Humacyte, Inc. (Nasdaq: HUMA) is developing a disruptive biotechnology platform to deliver universally implantable bioengineered human tissues, advanced tissue constructs, and organ systems designed to improve the lives of patients and transform the practice of medicine. The Company develops and manufactures acellular tissues to treat a wide range of diseases, injuries, and chronic conditions. Humacyte’s initial product candidates, a portfolio of ATEVs, are currently in late-stage clinical trials targeting multiple vascular applications, including vascular trauma repair, arteriovenous (AV) access for hemodialysis, and peripheral artery disease. A Biologics License Application for the ATEV in the vascular trauma indication is currently under review by the FDA and was granted Priority Review. Preclinical development is also underway in coronary artery bypass grafts, pediatric heart surgery, treatment of type 1 diabetes, and multiple novel cell and tissue applications. Humacyte’s 6mm ATEV for AV access in hemodialysis was the first product candidate to receive the FDA’s Regenerative Medicine Advanced Therapy (RMAT) designation and has also received FDA Fast Track designation. Humacyte’s 6mm ATEV for urgent arterial repair following extremity vascular trauma and for advanced PAD also have received an RMAT designations. The ATEV received priority designation for the treatment of vascular trauma by the U.S. Secretary of Defense. The ATEV is an investigational product and has not been approved for sale by the Food and Drug Administration or any international regulatory agency. For more information, visit www.Humacyte.com.

Forward-Looking Statements

This press release contains forward-looking statements that are based on beliefs and assumptions and on information currently available. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements in this press release include, but are not limited to, the statements regarding the initiation, timing, progress, and results of our preclinical and clinical trials, including our BVP program; the anticipated characteristics and performance of our ATEV and the BVP; our ability to successfully complete preclinical and clinical trials for our ATEVs and the BVP; the anticipated benefits of the BVP relative to existing alternatives; the anticipated commercialization of our ATEVs and our ability to manufacture at commercial scale; the implementation of our business model and strategic plans for our business; and the timing or likelihood of regulatory filings, acceptances, and approvals. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. These forward-looking statements are subject to a number of significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among others, changes in applicable laws or regulations, the possibility that Humacyte may be adversely affected by other economic, business, and/or competitive factors, and other risks and uncertainties, including those described under the header “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed by Humacyte with the SEC, and in future SEC filings. Most of these factors are outside of Humacyte’s control and are difficult to predict. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. Except as required by law, we have no current intention of updating any of the forward-looking statements in this press release. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

Humacyte Investor Contact:
Joyce Allaire
LifeSci Advisors LLC
+1-617-435-6602
jallaire@lifesciadvisors.com
investors@humacyte.com

Humacyte Media Contact:
Rich Luchette
Precision Strategies
+1-202-845-3924
rich@precisionstrategies.com
media@humacyte.com

FAQ

What is the size of Humacyte's (HUMA) recent registered direct offering?

Humacyte (HUMA) has announced a registered direct offering of approximately $30.0 million worth of its common stock and warrants.

How many shares and warrants is Humacyte (HUMA) selling in this offering?

Humacyte (HUMA) is selling 5,681,820 shares of its common stock and warrants to purchase 5,681,820 shares of common stock.

What is the exercise price of the warrants in Humacyte's (HUMA) offering?

The warrants in Humacyte's (HUMA) offering have an exercise price of $5.28 per share.

When is the expected closing date for Humacyte's (HUMA) registered direct offering?

The offering is expected to close on or about October 7, 2024, subject to the satisfaction of customary closing conditions.