Stealth BioTherapeutics Announces Pricing Of $4.7 Million Registered Direct Offering Of American Depositary Shares

Rhea-AI Summary

Stealth BioTherapeutics Corp (MITO) announced a registered direct offering of 2,339,000 American Depositary Shares (ADSs) at $2.00 each, aiming to raise approximately $4.7 million. The funds will support the clinical development of elamipretide and provide general corporate working capital. H.C. Wainwright & Co. is the exclusive placement agent for the offering. The ADSs are being offered under a previously filed shelf registration statement. The closing is expected on February 11, 2021, subject to customary conditions.

Positive

• Planned use of proceeds includes funding for the continued clinical development of elamipretide.
• Offering is expected to raise approximately $4.7 million, enhancing financial stability.

Negative

• Shareholder dilution due to the issuance of new ADSs.
• Potential risks related to market conditions and regulatory approvals affecting the company's future.

BOSTON, Feb. 10, 2021 /PRNewswire/ -- Stealth BioTherapeutics Corp (Nasdaq: MITO), a clinical-stage biotechnology company focused on the discovery, development and commercialization of novel therapies for diseases involving mitochondrial dysfunction, today announced that it has entered into definitive agreements with healthcare-focused institutional investors for the purchase and sale of 2,339,000 American Depositary Shares ("ADSs"), each representing 12 ordinary shares of Stealth, at a purchase price of $2.00 per ADS in a registered direct offering. The closing of the offering is expected to occur on or about February 11, 2021, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The gross proceeds to the Company from the offering are expected to be approximately $4.7 million, before deducting the placement agent's fees and other offering expenses payable by the Company. The Company intends to use the net proceeds from this offering to fund the continued clinical development of elamipretide and for working capital and general corporate purposes.

The ADSs are being offered by the Company pursuant to a "shelf" registration statement on Form F-3 (File No. 333-237542) previously filed with the Securities and Exchange Commission ("SEC"), and declared effective by the SEC on April 10, 2020. The offering of the ADSs will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the ADSs being offered will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC's website at http://www.sec.gov or by contacting H.C. Wainwright & Co., LLC, 430 Park Avenue, 3rd Floor, New York, NY 10022, or by telephone at (646) 975-6996, or email at placements@hcwco.com.

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

About Stealth

Stealth is a clinical-stage biotechnology company focused on the discovery, development and commercialization of novel therapies for diseases involving mitochondrial dysfunction. Mitochondria, found in nearly every cell in the body, are the body's main source of energy production and are critical for normal organ function.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking include statements about the anticipated completion of the registered direct offering and the intended use of proceeds. Statements that are not historical facts, including statements about Stealth BioTherapeutics' beliefs, plans and expectations, are forward-looking statements. The words "anticipate," "expect," "hope," "plan," "potential," "possible," "will," "believe," "estimate," "intend," "may," "predict," "project," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Stealth BioTherapeutics may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements as a result of known and unknown risks, uncertainties and other important factors, including: market and other conditions, Stealth BioTherapeutics' ability to obtain additional funding and to continue as a going concern; the impact of the COVID-19 pandemic; the ability to successfully demonstrate the efficacy and safety of Stealth BioTherapeutics' product candidates and future product candidates; the preclinical and clinical results for Stealth BioTherapeutics' product candidates, which may not support further development and marketing approval; the potential advantages of Stealth BioTherapeutics' product candidates; the content and timing of decisions made by the U.S. FDA, the EMA or other regulatory authorities, investigational review boards at clinical trial sites and publication review bodies, which may affect the initiation, timing and progress of preclinical studies and clinical trials of Stealth BioTherapeutics product candidates; Stealth BioTherapeutics' ability to obtain and maintain requisite regulatory approvals and to enroll patients in its planned clinical trials; unplanned cash requirements and expenditures; competitive factors; Stealth BioTherapeutics' ability to obtain, maintain and enforce patent and other intellectual property protection for any product candidates it is developing; whether the conditions for the closing of the offering will be satisfied; and general economic and market conditions. These and other risks are described in greater detail under the caption "Risk Factors" included in the Stealth BioTherapeutics' most recent Annual Report on Form 20-F filed with the SEC, as well as in any future filings with the SEC. Forward-looking statements represent management's current expectations and are inherently uncertain. Except as required by law, Stealth BioTherapeutics does not undertake any obligation to update forward-looking statements made by us to reflect subsequent events or circumstances.

Investor Relations

Stern Investor Relations
Janhavi Mohite, 212-362-1200
IR@StealthBT.com

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/stealth-biotherapeutics-announces-pricing-of-4-7-million-registered-direct-offering-of-american-depositary-shares-301225921.html

SOURCE Stealth BioTherapeutics Inc.

FAQ

What is the purpose of the $4.7 million offering by Stealth BioTherapeutics (MITO)?

The offering aims to fund the continued clinical development of elamipretide and for general corporate purposes.

How many American Depositary Shares (ADSs) is Stealth BioTherapeutics offering?

Stealth BioTherapeutics is offering 2,339,000 ADSs.

What is the purchase price for each ADS in the offering?

Each ADS is offered at a price of $2.00.

When is the expected closing date for the offering by MITO?

The closing of the offering is expected on or about February 11, 2021.

Who is managing the offering for Stealth BioTherapeutics?

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.