Nurix Therapeutics Announces Pricing of Upsized $175.0 Million Public Offering
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Insights
The recent public offering by Nurix Therapeutics represents a significant capital influx, with expected gross proceeds of $175 million. This move indicates a strategic effort to bolster the company's financial position, potentially to fund research and development, expand operations, or pay off existing debts. The pricing of shares at $15.00 suggests a valuation decision that balances current market conditions with the aim of attracting a broad range of public investors.
Furthermore, the inclusion of pre-funded warrants as an alternative investment option for certain investors is noteworthy. These warrants allow investors to purchase shares at a later date, at nearly the same price as the public offering, minus a nominal exercise price. This could be an attractive proposition for those who anticipate the company's value to increase but prefer to delay the actual share purchase.
An additional aspect to consider is the 30-day option granted to underwriters to purchase extra shares. This over-allotment option could stabilize the stock price post-offering and provide a cushion against market volatility. However, it's important for investors to monitor how the influx of new shares might affect the stock's price due to potential dilution.
The biotech sector, where Nurix operates, is highly competitive and capital-intensive. Raising capital through a public offering is a common strategy for such companies to sustain long-term projects, especially those in the clinical stage with no products on the market yet. The size of the offering and the terms provided can offer insights into the company's market confidence and financial needs.
Investors should consider the company's pipeline, the stage of development of its key products and its burn rate when assessing the potential impact of this capital raise. For instance, if the funds are allocated towards advancing promising treatments through clinical trials or scaling up manufacturing capabilities, this could be seen as a positive move towards future revenue generation.
It is also essential to evaluate the timing of the offering. If it coincides with positive news or advancements in the company's pipeline, the offering might be received favorably by the market. Conversely, if the offering follows a period of unfavorable news, it could be perceived as a move to shore up finances, which might raise concerns about the company's cash runway and financial health.
SAN FRANCISCO, April 11, 2024 (GLOBE NEWSWIRE) -- Nurix Therapeutics, Inc. (Nasdaq: NRIX) today announced the pricing of its upsized underwritten public offering of 10,166,667 shares of its common stock at a price to the public of
J.P. Morgan Securities LLC, Piper Sandler & Co. and Stifel, Nicolaus & Company, Incorporated are acting as joint book-running managers for the offering. RBC Capital Markets, LLC and Needham & Company, LLC are acting as lead managers for the offering.
Nurix currently intends to use any net proceeds from this offering primarily to fund clinical development of its drug candidates, to fund research and development activities to expand its pipeline and for working capital and general corporate purposes.
The public offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-258448) that was previously filed by Nurix with the Securities and Exchange Commission (“SEC”) on August 4, 2021, which was subsequently amended on February 9, 2023, by Post-Effective Amendment No. 1 and Post-Effective Amendment No. 2 and declared effective on April 6, 2023. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC and is available on the SEC’s website at www.sec.gov. A copy of the final prospectus supplement relating to the offering, when available, may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or via email at prospectus-eq_fi@jpmchase.com; Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, by telephone at (800) 747-3924, or via email at prospectus@psc.com; or Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720, or via email at syndprospectus@stifel.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of Nurix, 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 Nurix Therapeutics, Inc.
Nurix Therapeutics is a clinical stage biopharmaceutical company focused on the discovery, development and commercialization of innovative small molecules and antibody therapies based on the modulation of cellular protein levels as a novel treatment approach for cancer, inflammatory conditions, and other challenging diseases. Leveraging extensive expertise in E3 ligases together with proprietary DNA-encoded libraries, Nurix has built DELigase, an integrated discovery platform, to identify and advance novel drug candidates targeting E3 ligases, a broad class of enzymes that can modulate proteins within the cell. Nurix’s drug discovery approach is to either harness or inhibit the natural function of E3 ligases within the ubiquitin-proteasome system to selectively decrease or increase cellular protein levels. Nurix’s wholly owned, clinical stage pipeline includes targeted protein degraders of Bruton’s tyrosine kinase, a B-cell signaling protein, and inhibitors of Casitas B-lineage lymphoma proto-oncogene B, an E3 ligase that regulates activation of multiple immune cell types including T cell and NK cells. Nurix is headquartered in San Francisco, California.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and other federal securities laws. Any statements contained herein that do not describe historical facts, including, but not limited to, statements regarding the satisfaction of customary closing conditions related to the offering and sale of its securities, the expected gross proceeds and timing of completion of the offering and the expected use of proceeds, are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. Such risks and uncertainties include, among others, the risks identified in Nurix’s filings with the SEC, the prospectus related to the offering, and subsequent filings with the SEC. Any of these risks and uncertainties could materially and adversely affect Nurix’s results of operations, which would, in turn, have a significant and adverse impact on Nurix’s stock price. Nurix cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. Nurix undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.
Investor Contacts:
Jason Kantor, Ph.D
Nurix Therapeutics
ir@nurixtx.com
Elizabeth Wolffe, Ph.D
Wheelhouse Life Science Advisors
lwolffe@wheelhouselsa.com
Media Contact:
Aljanae Reynolds
Wheelhouse Life Science Advisors
areynolds@wheelhouselsa.com
FAQ
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