9 Meters Biopharma, Inc. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

9 Meters Biopharma (NASDAQ:NMTR) has announced the initiation of a proposed underwritten public offering of its common stock. The offering includes a potential 30-day option for underwriters to purchase an additional 15% of the shares. The net proceeds will be utilized for the clinical development of NM-002 for short bowel syndrome and larazotide for celiac disease, along with general corporate purposes. This offering is subject to market conditions.

Positive

• Intended use of funds for advancing clinical trials of NM-002 and larazotide.
• Strategic funding approach to address unmet medical needs in gastroenterology.

Negative

• Potential dilution of shares due to the public offering.
• Uncertainty regarding the success of clinical trials and regulatory approvals.

RALEIGH, NC / ACCESSWIRE / December 10, 2020 / 9 Meters Biopharma, Inc. (NASDAQ:NMTR), a clinical-stage rare and unmet needs-focused gastroenterology company, announced today that it has commenced a proposed underwritten public offering of shares of its common stock. In connection with this offering, 9 Meters Biopharma expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock to be sold in the offering. All of the shares in the proposed offering are to be sold by 9 Meters Biopharma. 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.

9 Meters Biopharma intends to use the net proceeds of this offering, together with other available funds, to advance the clinical development of NM-002 for the treatment of short bowel syndrome, the continued clinical development of larazotide for the treatment of celiac disease, and for working capital and general corporate purposes.

William Blair & Company, L.L.C. and Truist Securities, Inc. are acting as joint book-running managers for the offering. Oppenheimer & Co., Inc. is acting as lead manager for the offering and Brookline Capital Markets, a division of Arcadia Securities, LLC, is acting as co-manager for the offering.

The offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-249268) that was declared effective by the Securities and Exchange Commission (the "SEC") on October 9, 2020. 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. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to the offering, when available, may also be obtained from William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, or by calling (800) 621-0687, or emailing prospectus@williamblair.com, or from Truist Securities, Inc., Attention: Prospectus Department, 3333 Peachtree Road NE, 9th floor, Atlanta, Georgia 30326, or emailing TruistSecurities.prospectus@Truist.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 a solicitation of an offer to buy these securities nor shall there be any offer or 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. Any offer, if at all, will be made only by means of the prospectus supplement and accompanying prospectus, which are a part of the effective registration statement.

About 9 Meters Biopharma

9 Meters Biopharma, Inc. (the "Company") is a rare and unmet needs-focused gastroenterology company. The Company is working to advance NM-002, a proprietary long-acting GLP-1 agonist into a Phase 2 trial for Short Bowel Syndrome (SBS), a rare, orphan disease, as well as larazotide, a Phase 3-stage tight junction regulator being evaluated for patient-reported symptom improvement in non-responsive celiac disease.

For more information, please visit www.9meters.com or follow 9 Meters on Twitter and LinkedIn.

Forward-Looking Statements

This press release includes forward-looking statements based upon the Company's current expectations. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation: (i) risks related the satisfaction of customary closing conditions for the proposed offering, the Company's expected use of the net proceeds from the proposed offering and its need to raise additional capital even after this proposed offering; (ii) uncertainties associated with the clinical development and regulatory approval of product candidates; (iii) uncertainties in obtaining successful clinical results for product candidates and unexpected costs that may result therefrom; (iv) risks related to the failure to realize any value from product candidates and preclinical programs being developed and anticipated to be developed in light of inherent risks and difficulties involved in successfully bringing product candidates to market; (v) the impact of COVID-19 on our operations, clinical trials or future financings and (vi) risks associated with the possible failure to realize certain anticipated benefits of the Company's recent merger and the Naia acquisition, including with respect to future financial and operating results. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements because of these risks and uncertainties. These and other risks and uncertainties are more fully described in periodic filings with the SEC, including the factors described in the section entitled "Risk Factors" in the Company's. Annual Report on Form 10-K for the year ended December 31, 2019, Form 10-Q for the quarter ended September 30, 2020 and in other filings that the Company has made and future filings the Company will make with the SEC. You should not place undue reliance on these forward-looking statements, which are made only as of the date hereof or as of the dates indicated in the forward-looking statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

Corporate contacts

Edward J. Sitar, Chief Financial Officer
9 Meters Biopharma, Inc.
investor-relations@9meters.com
www.9meters.com

Media contact

Amy Jobe, Ph.D.
LifeSci Communications, LLC
ajobe@lifescicomms.com
315-879-8192

Investor contact

Corey Davis, Ph.D.
LifeSci Advisors, LLC
cdavis@lifesciadvisors.com
212-915-2577

SOURCE: 9 Meters Biopharma

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https://www.accesswire.com/620476/9-Meters-Biopharma-Inc-Announces-Proposed-Public-Offering-of-Common-Stock

FAQ

What is the purpose of 9 Meters Biopharma's public offering on December 10, 2020?

The public offering aims to raise funds for advancing clinical development of NM-002 and larazotide, as well as for general corporate purposes.

How much additional shares can underwriters purchase in the offering?

Underwriters have a 30-day option to purchase up to an additional 15% of the shares offered.

What are the potential risks associated with the public offering by NMTR?

Risks include potential dilution of shares and uncertainties around the success of clinical trials and regulatory approvals.

When was the press release about the public offering issued by 9 Meters Biopharma?

The press release was issued on December 10, 2020.