PhaseBio Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

PhaseBio Pharmaceuticals, Inc. (Nasdaq: PHAS) has initiated an underwritten public offering of its common stock, aiming to bolster funding for its cardiopulmonary disease therapies. The offering includes a 30-day option for underwriters to purchase additional shares and is governed by a shelf registration statement effective since January 8, 2020. Joint book-runners for the offering are Cowen, Stifel, and William Blair. The final terms will be outlined in a prospectus supplement filed with the SEC. There is no guarantee regarding the offering's completion or specifics.

Positive

• Commencement of an underwritten public offering to enhance funding for therapies.
• Potential to raise capital through the 30-day option for additional shares.

Negative

• Possible dilution of existing shares due to the public offering.
• Uncertainty regarding completion and terms of the offering may affect investor confidence.

PhaseBio Pharmaceuticals, Inc. (Nasdaq: PHAS), a clinical-stage biopharmaceutical company focused on the development and commercialization of novel therapies for cardiopulmonary diseases, today announced that it has commenced an underwritten public offering of shares of its common stock. In addition, PhaseBio expects to grant the underwriters a 30-day option to purchase additional shares of its common stock. All of the shares to be sold in the offering are to be sold by PhaseBio. 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 the actual size or terms of the offering.

Cowen, Stifel and William Blair are acting as joint book-running managers for the offering. Needham & Company is acting as lead manager for the offering.

The proposed offering is being made pursuant to a shelf registration statement, including a base prospectus, filed by PhaseBio that was declared effective by the Securities and Exchange Commission (“SEC”) on January 8, 2020. The offering will be made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. An electronic copy of the preliminary prospectus supplement and accompanying prospectus relating to the offering will be available on the website of the SEC at www.sec.gov. Copies of the preliminary prospectus supplement, when available, and the accompanying prospectus relating to the offering may be obtained by contacting Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Attn: Prospectus Department, by telephone at (833) 297-2926, or by email at PostSaleManualRequests@broadridge.com; Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at +1 (415) 364-2720 or by email at syndprospectus@stifel.com; or William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, telephone: 1-800-621-0687, or by email: prospectus@williamblair.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 the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

Forward-Looking Statements

This release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release concerning the Company’s expectations, plans, business outlook or future performance, and any other statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are “forward-looking statements.” Forward-looking statements include statements regarding the timing, size and completion of the proposed public offering. Forward-looking statements are by their nature subject to risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to the risks set forth in the Company’s most recent Annual Report on Form 10-K and other SEC filings that are available through EDGAR at www.sec.gov. Such risks and uncertainties may be amplified by the COVID-19 pandemic and its impact on our business and the global economy. The Company assumes no obligation to update our forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

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FAQ

What is the purpose of PhaseBio Pharmaceuticals' public offering?

The public offering aims to raise capital to support the development of novel therapies for cardiopulmonary diseases.

Who are the underwriters for the PhaseBio Pharmaceuticals offering?

Cowen, Stifel, and William Blair are acting as joint book-running managers for the offering.

What are the risks associated with PhaseBio Pharmaceuticals' public offering?

The offering is subject to market conditions and may lead to dilution of existing shares without assurance of completion.

When was the shelf registration statement for PhaseBio Pharmaceuticals declared effective?

The shelf registration statement was declared effective by the SEC on January 8, 2020.

How will investors access the prospectus related to the PhaseBio Pharmaceuticals offering?

Investors can access the preliminary prospectus supplement and accompanying prospectus at the SEC's website.