Rezolute Announces Closing of Public Offering with Approximately $60M in Gross Proceeds

Rhea-AI Summary

Rezolute, a late-stage biopharmaceutical company, announced the successful closure of its public offering, generating approximately $60 million in gross proceeds. The offering included 11.25 million shares of common stock at $4.00 per share and 3.75 million pre-funded warrants for $3.999 each. The company netted roughly $56.4 million after deducting underwriting discounts and commissions. The funds will support general corporate activities, post-Phase 3 preparation for the RZ358 program targeting congenital hyperinsulinism (cHI), and a potential late-stage clinical study of RZ358 for tumor hyperinsulinism (tHI) linked to islet and non-islet cell tumors.

Positive

• Successful public offering generating approximately $60 million in gross proceeds.
• Net proceeds of about $56.4 million after deductions.
• Funds allocated for post-Phase 3 planning and potential late-stage clinical study of RZ358.
• Focus on developing treatments for serious rare diseases such as congenital and tumor hyperinsulinism.

Negative

• Potential shareholder dilution due to the issuance of 11.25 million shares and 3.75 million pre-funded warrants.

Insights

Financial Analyst

The completion of Rezolute's public offering, raising approximately $60M in gross proceeds, is a significant event for the company. The net proceeds of $56.4M will bolster the company's cash reserves, providing a stronger financial base for its ongoing projects. This capital infusion is particularly important for a biotech firm in late-stage development as it ensures the continuity of pivotal research and development activities.

Short-term implications: The successful fundraising effort likely enhances investor confidence, reducing immediate liquidity concerns and enabling the company to meet near-term financial commitments. However, it is pertinent to note the dilution effect, as issuing 11.25 million shares and pre-funded warrants will increase the total shares outstanding. This dilution can impact earnings per share (EPS) in the short term.

Long-term implications: The strategic use of the proceeds to advance the RZ358 program into late-stage trials for tumor hyperinsulinism (tHI) reflects a focused approach to achieving clinical milestones. If the trials succeed, the potential approval and commercialization of RZ358 could dramatically boost the company's revenue streams and market position in the rare disease therapeutic segment.

Medical Research Analyst

Rezolute's focus on developing therapies for serious rare diseases positions it uniquely in the biopharmaceutical industry. The allocation of funds towards a clinical study of RZ358 for tumor hyperinsulinism (tHI) marks a critical step in addressing unmet medical needs. Tumor hyperinsulinism, resulting from insulinomas or non-islet cell tumors, represents a challenging condition with limited treatment options. RZ358's potential to treat both congenital and tumor hyperinsulinism could be transformative for patients struggling with these conditions.

It's important to consider the clinical trial risks typical for biotech companies. While initial data for RZ358 appears promising, the success of late-stage trials is not guaranteed. Patient recruitment, regulatory hurdles and clinical endpoints are potential challenges that could affect trial outcomes and timelines.

The successful progression of RZ358 through clinical trials would not only benefit patients but also significantly enhance the company's valuation and attractiveness as an investment.

NEW YORK, June 24, 2024 (GLOBE NEWSWIRE) -- Rezolute, Inc. (Nasdaq: RZLT) (“Rezolute” or the “Company”), a late-stage biopharmaceutical company committed to developing novel, transformative therapies for serious rare diseases, today announced the closing of its underwritten public offering of 11,250,000 shares of its common stock at a price to the public of $4.00 per share and, to certain investors in lieu of common stock, pre-funded warrants to purchase 3,750,000 shares of its common stock at a price to the public of $3.999 per pre-funded warrant, in each case, before underwriting discounts and commissions. All of the shares and warrants in the public offering were sold by the Company.

The Company received net proceeds of approximately $56.4 million from the public offering, after deducting underwriting discounts and commissions and estimated offering expenses. In addition to general corporate activities and post-Phase 3 planning for its RZ358 program in congenital hyperinsulinism (cHI), Rezolute intends to use the net proceeds from the offering to fund activities towards initiation and conduct of a potential late-stage, registrational, clinical study of RZ358 in patients with tumor hyperinsulinism (tHI) resulting from islet cell (insulinomas) and non-islet cell tumors (NICTs).

Jefferies and Cantor served as the joint book-running managers for the offering. BTIG, Craig-Hallum, H.C. Wainwright & Co., Jones and Maxim Group LLC are acting as co-managers for the offering.

The public offering was made only by means of a prospectus supplement and accompanying prospectus that form a part of an effective registration statement. A final prospectus supplement related to the public offering was filed with the Securities and Exchange Commission (the “SEC”) and is available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the public offering may also be obtained by contacting: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, by telephone at 877-821-7388, or by email at prospectus_department@jefferies.com or Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022, or by email at prospectus@cantor.com

This press release does not constitute an offer to sell, or a solicitation of an offer to buy these securities, 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.

Rezolute, Inc.

Rezolute is a late-stage rare disease company focused on significantly improving outcomes for individuals with hypoglycemia caused by hyperinsulinism (HI). The Company’s antibody therapy, RZ358, is designed to treat all forms of HI and has shown substantial benefit in clinical trials and real-world use for the treatment of congenital hyperinsulinism (cHI) and tumor hyperinsulinism (tHI).

Forward-Looking Statements

Any statements in this press release about the Company’s future expectations, plans and prospects, including statements regarding the public offering, constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements about the Company’s strategy, future operations and future expectations and plans and prospects for the Company, and any other statements containing the words “anticipate,” “believe,” “estimate,” “expect,” “intend”, “goal,” “may”, “might,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions. Such forward-looking statements involve substantial risks and uncertainties that could cause the Company’s development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, those related to market and other financial conditions, the potential completion of the public offering, satisfaction of customary closing conditions related to the public offering and other factors discussed in the “Risk Factors” section contained in the preliminary prospectus supplement and the reports that the Company files with the SEC. Any forward-looking statements represent the Company’s views only as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. While the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so except as required by law.

Contacts:

Rezolute, Inc.
Christen Baglaneas
cbaglaneas@rezolutebio.com
508-272-6717

LHA Investor Relations
Tirth T. Patel
tpatel@lhai.com
212-201-6614

FAQ

What was the outcome of Rezolute's recent public offering?

Rezolute's recent public offering closed successfully, generating approximately $60 million in gross proceeds.

How many shares and pre-funded warrants were included in Rezolute's public offering?

The public offering included 11.25 million shares of common stock and 3.75 million pre-funded warrants.

At what price were Rezolute's shares and pre-funded warrants offered?

Shares were offered at $4.00 each, and pre-funded warrants were offered at $3.999 each.

What is the stock symbol for Rezolute?

The stock symbol for Rezolute is RZLT.

What are the intended uses of the net proceeds from Rezolute's public offering?

The net proceeds will support general corporate activities, post-Phase 3 planning for the RZ358 program in cHI, and a potential late-stage clinical study of RZ358 for tHI.

Which companies served as joint book-running managers for Rezolute's public offering?

Jefferies and Cantor served as the joint book-running managers for the offering.

How much net proceeds did Rezolute receive after deductions from the public offering?

Rezolute received approximately $56.4 million in net proceeds after deductions.