LogicBio Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

LogicBio Therapeutics (Nasdaq: LOGC) announced its intention to conduct an underwritten public offering of common stock. The offering includes a 30-day option for underwriters to purchase an additional 15% of shares. The company plans to use net proceeds to support clinical development of LB-001, advance GeneRide and Next Generation Capsid platforms, and expand its product pipeline. The offering is subject to market conditions and conducted under an effective shelf registration statement. No assurance is provided on the completion or terms of the offering.

Positive

• Intended use of proceeds includes funding for clinical development of LB-001 and expansion of product pipeline.
• Offering may enhance financial stability and growth potential for LogicBio.

Negative

• Public offering may lead to shareholder dilution if new shares are issued.
• Market uncertainty around the timing and terms of the offering could affect stock price.

LEXINGTON, Mass., Sept. 30, 2020 (GLOBE NEWSWIRE) -- LogicBio Therapeutics, Inc. (Nasdaq:LOGC) (LogicBio), a company dedicated to extending the reach of genetic medicine with pioneering targeted delivery platforms, today announced that it intends to offer and sell shares of its common stock in an underwritten public offering. As part of the offering, LogicBio intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering on the same terms and conditions. All shares being offered are to be sold by LogicBio.

Jefferies, Barclays and William Blair are acting as joint book-running managers, and Chardan is acting as lead manager for the offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

LogicBio intends to use the net proceeds from the offering to support clinical development of LB-001, to progress the development of its GeneRide and Next Generation Capsid platforms, to expand its pipeline of product candidates into other indications that may be targeted by its platforms and the balance to fund working capital, capital expenditures and other general corporate purposes.

The shares of common stock described above will be offered by LogicBio pursuant to an effective shelf registration statement on Form S-3 (File No. 333-234735), which was declared effective by the Securities and Exchange Commission (SEC) on November 25, 2019. The offering will be made only by means of a prospectus supplement and accompanying prospectus. A preliminary prospectus supplement relating to and describing the terms of the offering is expected to be filed with the SEC and, if and when filed, copies of the preliminary prospectus supplement and the accompanying prospectus may be obtained, when available, from Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, NY 10022, by telephone: (877) 821-7388, or by email: Prospectus_Department@Jefferies.com, Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: (888) 603-5847, or email: Barclaysprospectus@broadridge.com, or William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, or by email at prospectus@williamblair.com or by telephone at 1-800-621-0687. Electronic copies of the preliminary prospectus supplement and accompanying prospectus will also be available on the website of the SEC at www.sec.gov.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the offering, nor shall there be any sale of these securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About LogicBio Therapeutics
LogicBio Therapeutics is dedicated to extending the reach of genetic medicine with pioneering targeted delivery platforms. LogicBio’s proprietary genome editing technology platform, GeneRide, enables the site-specific integration of a therapeutic transgene without nucleases or exogenous promoters by harnessing the native process of homologous recombination. LogicBio is also developing a Next Generation Capsid platform for use in gene editing and gene therapies. LogicBio is developing these highly potent vectors for internal development candidates and potentially for business development collaborations. LogicBio is headquartered in Lexington, Mass.

Forward-Looking Statements
Certain statements contained in this press release, including those relating to the terms of the offering and expected use of proceeds from the sale of common stock, are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties associated with the consummation of the proposed offering and general economic conditions, including as a result of the ongoing COVID-19 pandemic, and other risks identified from time to time in the reports we file with the SEC, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, and the preliminary prospectus supplement and accompanying prospectus related to the offering to be filed with the SEC, which are available at www.sec.gov. The forward-looking statements in this press release speak only as of the date of this document, and we undertake no obligation to update or revise any of the statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

Contact:

Matthias Jaffe
Chief Financial Officer
mjaffe@logicbio.com
(617) 245-0399

FAQ

What is the purpose of the LogicBio Therapeutics common stock offering?

LogicBio intends to use the net proceeds from the stock offering to support clinical development of LB-001 and expand its product pipeline.

What are the terms of LogicBio's stock offering?

The offering includes a 30-day option for underwriters to purchase an additional 15% of shares on the same terms.

When did LogicBio announce the public offering?

LogicBio announced the public offering on September 30, 2020.

How does the stock offering affect current shareholders of LOGC?

The stock offering may result in dilution of current shareholders' ownership in LogicBio.

Who is managing the LogicBio stock offering?

Jefferies, Barclays, and William Blair are acting as joint book-running managers for the offering.