Longboard Pharmaceuticals Announces Closing of Public Offering of Common Stock and Full Exercise of Underwriters’ Option to Purchase Additional Shares
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Insights
The completion of Longboard Pharmaceuticals' public offering is a significant liquidity event that may alter the company's financial trajectory. The infusion of approximately $241.5 million in gross proceeds before expenses provides the firm with substantial capital to advance its clinical programs in neurological diseases. This capital injection could accelerate research and development timelines, potentially bringing novel treatments to market more quickly. However, investors should be mindful of the dilutive effect of the new shares on existing shareholders and consider the potential impact on earnings per share.
Furthermore, the participation of reputable financial institutions as book-running managers and lead managers may lend credibility to the offering. The role of Cantor, Citigroup, Wedbush PacGrow and H.C. Wainwright & Co. in managing the offering indicates a level of institutional confidence in Longboard's prospects. Nonetheless, the market's response to the new share issuance will be crucial to observe, as it may reflect investor sentiment regarding the company's valuation and future prospects.
Longboard Pharmaceuticals' focus on developing transformative medicines for neurological diseases places it within a high-stakes segment of the biotech industry. The successful closing of its public offering indicates market readiness to invest in companies targeting this therapeutic area. Given the complexity and high unmet medical need in neurological disorders, the capital raised could significantly bolster Longboard's ability to compete in this space.
It is also noteworthy that the offering was conducted under two shelf registration statements declared effective by the SEC. This strategic move allows for more efficient capital raising when market conditions are favorable. The company's ability to exercise the full option of additional shares suggests strong investor demand, which could be a positive indicator of market perception towards Longboard's growth potential and pipeline strength.
The legal framework underpinning Longboard Pharmaceuticals' public offering is critical for ensuring regulatory compliance and investor protection. The use of shelf registration statements on Form S-3, including base prospectuses, provides a streamlined process for the company to offer and sell securities. This mechanism is often employed by well-established companies seeking efficient access to capital markets.
Investors should take note of the legal stipulations that the offering does not constitute an offer to sell or a solicitation of an offer to buy in jurisdictions where such actions would be unlawful. This highlights the importance of adhering to securities laws that vary by state and jurisdiction. The availability of the final prospectus supplement and accompanying prospectuses on the SEC's website offers transparency, allowing investors to make informed decisions based on detailed disclosures about the offering.
Cantor and Citigroup acted as joint lead book-running managers for the offering, and Wedbush PacGrow and H.C. Wainwright & Co. acted as lead managers for the offering.
The offering was made pursuant to two shelf registration statements on Form S-3, including base prospectuses, which were previously filed with the Securities and Exchange Commission (the “SEC”) and declared effective on October 11, 2022 and August 11, 2023, respectively, as well as a related registration statement on Form S-3MEF. A preliminary prospectus supplement and accompanying prospectuses relating to the offering were filed with the SEC and are available for free on the SEC’s website located at http://www.sec.gov. A final prospectus supplement and accompanying prospectuses relating to the offering were filed with the SEC and are available for free on the SEC’s website located at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectuses relating to the offering may be obtained from: Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street,
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, 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 Longboard Pharmaceuticals
Longboard Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases. Longboard is working to advance a portfolio of centrally acting product candidates designed to be highly selective for specific G protein-coupled receptors (GPCRs). Longboard’s small molecule product candidates are based on more than 20 years of GPCR research. Longboard plans to advance bexicaserin (LP352), an oral, centrally acting 5-hydroxytryptamine 2C (5-HT2C) receptor superagonist, with no observed impact on 5-HT2B and 5-HT2A receptor subtypes, into a global Phase 3 program. In January 2024, Longboard reported topline data from a Phase 1b/2a clinical trial, the PACIFIC Study, evaluating bexicaserin in participants ages 12 to 65 years old with a broad range of Developmental and Epileptic Encephalopathies (DEEs), including Lennox-Gastaut syndrome, Dravet syndrome and other DEEs. Longboard is also evaluating LP659, an oral, centrally acting, sphingosine-1-phosphate (S1P) receptor subtypes 1 and 5 modulator, which is in development for the potential treatment of rare neuroinflammatory conditions. Longboard has initiated a Phase 1 single-ascending dose (SAD) clinical trial for LP659 in healthy volunteers, with topline data expected in the first half of 2024.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding expected timing for topline data. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “expects” are intended to identify forward-looking statements. These forward-looking statements are based upon Longboard’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with Longboard’s ongoing and planned clinical trials and its business in general and the other risks described in Longboard’s filings with the SEC, including under the heading “Risk Factors” contained therein. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Longboard undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240108546928/en/
Corporate Contact:
Megan E. Knight
Head of Investor Relations
IR@longboardpharma.com
858.789.9283
Source: Longboard Pharmaceuticals, Inc.
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