Precigen Announces Pricing of $112.5 Million Public Offering of Common Stock

Rhea-AI Summary

Precigen, Inc. (PGEN) announced a public offering of 15 million shares at $7.50 per share, generating approximately $112.5 million in gross proceeds. The underwriters have a 30-day option to purchase an additional 2.25 million shares. The offering, expected to close on January 26, 2021, will fund clinical and preclinical product development, working capital, and other corporate purposes. Wells Fargo Securities and Stifel are joint book-running managers.

Positive

• Gross proceeds estimated at $112.5 million for product development.
• Funding allocated for clinical and preclinical advancements.

Negative

• Potential dilution from the public offering.
• Market reaction may affect stock price negatively.

GERMANTOWN, Md., Jan. 22, 2021 /PRNewswire/ -- Precigen, Inc. (Nasdaq: PGEN) today announced the pricing of an underwritten public offering of 15,000,000 shares of its common stock at a public offering price of $7.50 per share. Precigen has also granted the underwriters a 30-day option to purchase up to an additional 2,250,000 shares of its common stock. Gross proceeds from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $112.5 million, excluding any exercise of the underwriters' option. The offering is expected to close on January 26, 2021, subject to customary closing conditions.

Wells Fargo Securities and Stifel are acting as joint book-running managers for the offering with JMP Securities acting as lead manager and H.C. Wainwright & Co. acting as co-manager.

Precigen intends to use the net proceeds from the offering to fund the development of clinical and preclinical product candidates and for working capital and other general corporate purposes.

The public offering is being made pursuant to a shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission (SEC) and became effective on July 2, 2020. The final prospectus supplement and accompanying base prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC's website at www.sec.gov. Copies of the final prospectus supplement, when available, and accompanying base prospectus relating to the offering may be obtained from Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 500 West 33rd Street, New York, NY 10001,  by telephone at (800) 326-5897, or by email at cmclientsupport@wellsfargo.com; or Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, by telephone at (415) 364-2720, or by email at syndprospectus@stifel.com. 

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or 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 jurisdiction.

Precigen: Advancing Medicine with Precision™
Precigen (Nasdaq: PGEN) is a dedicated discovery and clinical stage biopharmaceutical company advancing the next generation of gene and cell therapies using precision technology to target the most urgent and intractable diseases in our core therapeutic areas of immuno-oncology, autoimmune disorders, and infectious diseases. Our technologies are designed to enable us to find innovative solutions for affordable biotherapeutics in a controlled manner. Precigen operates as an innovation engine progressing a preclinical and clinical pipeline of well-differentiated unique therapies toward clinical proof-of-concept and commercialization.

Cautionary Statement Regarding Forward-Looking Statements
Some of the statements made in this press release are forward-looking statements. These forward-looking statements are based upon Precigen's current expectations and projections about future events and generally relate to the proposed public offering. Various factors may cause differences between Precigen's expectations and actual results, including risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the proposed offering. For further information on potential risks and uncertainties, and other important factors, any of which could cause Precigen's actual results to differ from those contained in the forward-looking statements, see the section entitled "Risk Factors" in Precigen's most recent Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission.

For more information, contact:

Investor Contact: Steven Harasym Vice President, Investor Relations Tel: +1 (301) 556-9850 investors@precigen.com

Media Contact: Glenn Silver Lazar-FINN Partners glenn.silver@finnpartners.com

 

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SOURCE Precigen, Inc.

FAQ

What are the details of Precigen's public offering on January 22, 2021?

Precigen announced a public offering of 15 million shares at $7.50 each, with expected gross proceeds of $112.5 million.

When will the Precigen public offering close?

The offering is scheduled to close on January 26, 2021.

How will Precigen use the funds from the public offering?

The funds will be used for clinical and preclinical product development and working capital.

Who are the underwriters for Precigen's offering?

Wells Fargo Securities and Stifel are acting as joint book-running managers.

Is there an option for underwriters to purchase more shares in Precigen's offering?

Yes, underwriters have a 30-day option to buy up to an additional 2.25 million shares.