Milestone Pharmaceuticals Announces Proposed Public Offering of Common Shares and Pre-Funded Warrants
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Insights
The commencement of an underwritten public offering by Milestone Pharmaceuticals is a strategic move that could potentially bring in significant capital to the company. The offering includes both common shares and pre-funded warrants, which indicates a flexible approach to attract a broad range of investors. By granting underwriters a 30-day option to purchase additional shares, the company also hedges against immediate over-supply, potentially stabilizing the stock price post-offering.
Investors and analysts will be closely monitoring the success of this offering, as it could influence Milestone's financial stability and its ability to fund ongoing projects. The use of proceeds for the development of etripamil for PSVT and AFib-RVR suggests a focused strategy on advancing its pipeline, which could, in the long run, enhance shareholder value if the clinical outcomes are positive. The market's reaction to this offering will be telling of investor confidence in Milestone's growth prospects.
Etripamil, the drug in development for PSVT and AFib-RVR, represents a significant part of Milestone's value proposition. As a non-invasive, patient-administered nasal spray, it could offer a differentiated approach to managing these cardiac conditions, which currently have limited treatment options. The success of etripamil in clinical trials could disrupt the cardiovascular treatment market.
Investors should understand that drug development is inherently risky and the allocation of proceeds from the offering to etripamil's development underscores the importance of its clinical success to Milestone's future. The potential market size for PSVT and AFib-RVR treatments and the competitive landscape will be key factors in determining the long-term return on this investment.
The decision by Milestone to engage in a public offering is indicative of a broader trend within the biopharmaceutical industry, where companies often rely on capital markets to fund research and development. The structure of the offering, including common shares and pre-funded warrants, is designed to appeal to a diverse investor base, which may include both institutional investors and retail investors.
Market conditions at the time of the offering will heavily influence its success. Factors such as current interest rates, investor sentiment towards the biopharmaceutical sector and overall market volatility play crucial roles. The involvement of Piper Sandler & Co. as the sole bookrunning manager indicates Milestone's intent to leverage the firm's expertise and investor network to ensure the offering's success.
MONTREAL and CHARLOTTE, N.C., Feb. 28, 2024 (GLOBE NEWSWIRE) -- Milestone® Pharmaceuticals Inc. (“Milestone”) (Nasdaq: MIST), a biopharmaceutical company focused on the development and commercialization of innovative cardiovascular medicines, today announced that it has commenced an underwritten public offering (the “Offering”) of its common shares (the “Shares,”), and, in lieu of common shares to certain investors that so choose, pre-funded warrants to purchase common shares (“Pre-Funded Warrants” and, together with the Shares, the “Securities”). In addition, Milestone expects to grant the underwriters a 30-day option to purchase a number of additional common shares equal to
Milestone intends to use the net proceeds from the Offering to continue the development of etripamil in its lead indication of paroxysmal supraventricular tachycardia (PSVT) and its subsequent indication of atrial fibrillation with rapid ventricular rate (AFib-RVR), as well as for working capital and other general corporate purposes.
Piper Sandler & Co. is acting as sole bookrunning manager for the Offering.
The Securities are being offered by Milestone pursuant to a shelf registration statement on Form S-3 (333-261049), including a base prospectus, that was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on February 2, 2022. The Offering is being made only by means of a prospectus supplement and accompanying prospectus that form a part of the registration statement. A preliminary prospectus supplement related to the Offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. A copy of the preliminary prospectus supplement and the accompanying prospectus relating to the Offering may be obtained, when available, from: Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, or by telephone at (800) 747-3924, or by email at prospectus@psc.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any Securities, 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 Milestone Pharmaceuticals
Milestone Pharmaceuticals Inc. (Nasdaq: MIST) is a biopharmaceutical company developing and commercializing innovative cardiovascular medicines to benefit people living with certain heart conditions. Milestone recently submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for etripamil for treatment of an abnormal heart rhythm, paroxysmal supraventricular tachycardia or PSVT.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "continue," "could," "demonstrate," "designed," "develop," "estimate," "expect," "may," "pending," "plan," "potential," "progress," "will" and similar expressions (as well as other words or expressions referencing future events, conditions, or circumstances) are intended to identify forward-looking statements. These forward-looking statements are based on Milestone's expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from these forward-looking statements. Forward-looking statements contained in this press release include statements regarding the consummation of the Offering; the timing and size of the Offering; the grant to the underwriters of the option to purchase additional common shares; the Milestone’s intended use of proceeds from the Offering, if any. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, whether Milestone’s future interactions with the FDA will have satisfactory outcomes; whether and when, if at all, Milestone’s NDA for etripamil will be accepted for review and, if accepted for review, approved by the FDA; whether the FDA will require additional trials or data which may significantly delay and put at risk Milestone’s efforts to obtain approval and may not be successful; the risks inherent in biopharmaceutical product development and clinical trials, including the lengthy and uncertain regulatory approval process; uncertainties related to the timing of initiation, enrollment, completion, evaluation and results of Milestone’s clinical trials; risks and uncertainty related to the complexity inherent in cleaning, verifying and analyzing trial data; and whether the clinical trials will validate the safety and efficacy of etripamil for PSVT or other indications, among others, general economic, political, and market conditions, including deteriorating market conditions due to investor concerns regarding inflation and Russian hostilities in Ukraine and overall fluctuations in the financial markets in the United States and abroad, risks related to pandemics and public health emergencies, and risks related the sufficiency of Milestone's capital resources and its ability to raise additional capital in the current economic climate. These and other risks are set forth in Milestone's filings with the U.S. Securities and Exchange Commission, including in the preliminary prospectus related to the Offering, annual report on Form 10-K for the year ended December 31, 2022 and quarterly report on Form 10-K for the quarterly period ended September 30, 2023, under the caption "Risk Factors," as such discussion may be updated from time to time by subsequent filings, we may make with the U.S. Securities and Exchange Commission. Milestone cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. Except as required by law, Milestone assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.
Contact
Kim Fox, Vice President, Communications
kfox@milestonepharma.com
704-803-9295
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