Krystal Biotech Announces Pricing of $125 Million Public Offering of Common Stock
Krystal Biotech, Inc. (Nasdaq: KRYS) has announced the pricing of an underwritten public offering of 2,275,000 shares at $55.00 each, with gross proceeds expected to be about $125.1 million. The offering is set to close around May 21, 2020, and includes a 30-day option for underwriters to purchase an additional 341,250 shares. Proceeds will be used for advancing clinical trials and developing a manufacturing facility. Leading firms managing the offering include Cowen, Evercore ISI, and others.
- Gross proceeds of approximately $125.1 million expected from the offering.
- Funds intended to advance B-VEC into a Phase 3 clinical trial and support other pipeline developments.
- Development of a good manufacturing practices certified facility planned.
- Dilution risk for existing shareholders due to the public offering.
PITTSBURGH, May 18, 2020 (GLOBE NEWSWIRE) -- Krystal Biotech, Inc. (Nasdaq: KRYS) (the “Company”), a gene therapy company developing a new class of transformative medicines to treat diseases caused by gene or protein dysfunction, today announced that it has priced the previously announced underwritten public offering of 2,275,000 shares of its common stock, at a public offering price of
Cowen, Evercore ISI, Guggenheim Securities and William Blair are acting as joint book-running managers for the offering. Chardan is acting as lead manager for the offering and H.C. Wainwright & Co. is acting as co-manager for the offering.
The Company currently intends to use the net proceeds from this offering, together with its existing cash, cash equivalents and short-term investments: (i) to advance B-VEC into and through a Phase 3 clinical trial; (ii) to advance the clinical development of KB105; (iii) to advance the pre-clinical and clinical development of KB104, KB301 and KB407; (iv) to complete development of a good manufacturing practices certified manufacturing facility for scale-up production of the Company’s pipeline compounds and commencement of operations of that facility; and (v) the balance for working capital and general corporate purposes, including research and development expenses and capital expenditures.
The offering is being made pursuant to a “shelf” registration statement on Form S-3 (File No. 333-237983) that became effective upon filing with the Securities and Exchange Commission (“SEC”) on May 4, 2020. A preliminary prospectus supplement relating to and describing the terms of the offering was filed with the SEC and is available on the SEC’s website at http://www.sec.gov. A final prospectus supplement and the accompanying base prospectus relating to the offering and the shares of common stock being offered will be filed with the SEC. Copies of the registration statement, the final prospectus supplement and the accompanying base prospectus may be obtained on the SEC’s website at http://www.sec.gov or, when available, by contacting: Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Attn: Prospectus Department, by telephone at (833) 297-2926, or by email at PostSaleManualRequests@broadridge.com, or Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 36th Floor, New York, New York 10055, telephone: 888-474-0200, email: ecm.prospectus@evercore.com.
This announcement is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy any securities of the Company, which is made only by means of a prospectus supplement and related base prospectus, nor will there be any sale of these securities in any state 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 Krystal Biotech
Krystal Biotech, Inc. (Nasdaq: KRYS) is a gene therapy company developing a new class of transformative medicines to treat diseases caused by gene or protein dysfunction.
Forward-Looking Statements
This press release contains forward-looking statements and information, including with respect to the offering and the intended use of the proceeds of the 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 forward-looking statements. Although the Company’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, among others: the Company’s ability to satisfy the closing conditions of the offering, the timing or occurrence of the closing, prevailing market conditions, the anticipated use of the proceeds of the offering, which could change as a result of market conditions or for other reasons, and those other risks detailed from time to time under the caption “Risk Factors” and elsewhere in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and in its Quarterly Report on Form 10-Q for the three months ended March 31, 2020, and in future SEC filings and reports of the Company. The Company undertakes no duty or obligation to update any forward-looking statements contained herein as a result of new information, future events or changes in its expectations or circumstances.
INVESTOR CONTACT
Ashley R. Robinson
LifeSci Advisors
arr@lifesciadvisors.com
MEDIA CONTACT
Darren Opland, PhD
LifeSci Communications
darren@lifescicomms.com
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