aTyr Pharma Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

aTyr Pharma, a biotherapeutics company, announced the pricing of an underwritten public offering of 22,225,000 shares of common stock at $2.25 per share, expected to generate approximately $50 million in gross proceeds. The offering, closing on February 13, 2023, includes a 30-day option for underwriters to purchase an additional 3,333,750 shares. Proceeds will primarily fund the ongoing development of efzofitimod, particularly a planned Phase 2 study for systemic sclerosis-associated interstitial lung disease.

Positive

• Expected gross proceeds of approximately $50 million from the offering.
• Proceeds will support development of efzofitimod and clinical trials, potentially driving future growth.

Negative

• The public offering may dilute existing shareholders' equity.

SAN DIEGO, Feb. 09, 2023 (GLOBE NEWSWIRE) -- aTyr Pharma, Inc. (Nasdaq: LIFE), a biotherapeutics company engaged in the discovery and development of first-in-class medicines from its proprietary tRNA synthetase platform, today announced the pricing of its previously announced underwritten public offering of 22,225,000 shares of its common stock at a public offering price of $2.25 per share. The gross proceeds to aTyr from the offering, before deducting the underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $50.0 million. In addition, aTyr has granted the underwriters a 30-day option to purchase up to an additional 3,333,750 shares of its common stock at the public offering price per share, less underwriting discounts and commissions. All of the shares being sold in the offering are being sold by aTyr. The offering is expected to close on or about February 13, 2023, subject to customary closing conditions.

RBC Capital Markets is acting as sole book-running manager for the offering. H.C. Wainwright & Co. is acting as lead manager for the offering.

aTyr intends to use the net proceeds from the offering primarily for general corporate purposes, including the ongoing development of efzofitimod and the expansion of its clinical development program to include a planned Phase 2 study of efzofitimod in patients with systemic sclerosis (SSc, or scleroderma)-associated interstitial lung disease (SSc-ILD), in 2023, based on recent clearance of an Investigational New Drug (IND) application by the U.S. Food and Drug Administration, and for working capital.

The offering is being made pursuant to a shelf registration statement on Form S-3, including a base prospectus, filed by aTyr that was declared effective by the Securities and Exchange Commission ("SEC") on April 8, 2022. The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering were filed with the SEC and are available for free on the website of the SEC at www.sec.gov. An electronic copy of the final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the website of the SEC at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained by contacting RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, 8th Floor, New York, New York 10281, by telephone at (877) 822-4089 or by email at equityprospectus@rbccm.com; or H.C. Wainwright & Co., LLC, 430 Park Avenue, 3rd Floor, New York, New York 10022, by telephone at (212) 856-5711 or by email at placements@hcwco.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

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 other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About aTyr

aTyr is a biotherapeutics company engaged in the discovery and development of first-in-class medicines from its proprietary tRNA synthetase platform. aTyr’s research and development efforts are concentrated on a newly discovered area of biology, the extracellular functionality and signaling pathways of tRNA synthetases. aTyr has built a global intellectual property estate directed to a potential pipeline of protein compositions derived from 20 tRNA synthetase genes and their extracellular targets. aTyr’s primary focus is efzofitimod, a clinical-stage product candidate which binds to the neuropilin-2 receptor and is designed to downregulate immune engagement in fibrotic lung disease.  

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identified by the use of words such as “estimates,” “expects,” “intends,” “plans,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by such safe harbor provisions for forward-looking statements and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements include statements regarding the timing and completion of the offering, gross proceeds and anticipated use of proceeds from the offering. These forward-looking statements also reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects, as reflected in or suggested by these forward-looking statements, are reasonable, we can give no assurance that the plans, intentions, expectations, strategies or prospects will be attained or achieved. All forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain. Furthermore, actual results may differ materially from those described in these forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, risks and uncertainties associated with market conditions, unanticipated demand on our capital resources and the satisfaction of customary closing conditions related to the offering, as well as those risks set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 filed with the SEC on November 14, 2022 and in our other SEC filings. Except as required by law, we assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

IMMEDIATE RELEASE

Contact:

Ashlee Dunston

Director, Investor Relations and Corporate Communications

adunston@atyrpharma.com

FAQ

What is the purpose of aTyr Pharma's recent public offering on February 9, 2023?

The proceeds from the offering will primarily be used for general corporate purposes, including the development of efzofitimod.

How much did aTyr Pharma raise in its offering?

aTyr Pharma expects to raise approximately $50 million from the sale of 22,225,000 shares at $2.25 each.

When is the expected closing date for aTyr Pharma's public offering?

The offering is expected to close on or about February 13, 2023.

What will aTyr Pharma do with the funds from the offering?

The funds will be primarily allocated to the clinical development of efzofitimod, including a Phase 2 study for systemic sclerosis-associated interstitial lung disease.

What risks are associated with aTyr Pharma's public offering?

One potential risk is the dilution of existing shareholders' equity due to the issuance of new shares.