Shattuck Labs Announces $50 Million Public Offering of Common Stock and Concurrent Private Placement of Pre-Funded Warrants
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Insights
The announcement by Shattuck Labs regarding the pricing of a registered offering and concurrent private placement is a significant financial event for the company. The capital raised, expected to be around $50 million before fees, indicates a strategic move to bolster the company's cash reserves. This infusion of funds could be allocated towards advancing their clinical trials, expanding their R&D pipeline, or preparing for commercialization activities, depending on their current stage and strategy.
For investors, the immediate dilution effect of the new shares and pre-funded warrants could potentially exert downward pressure on the stock price in the short-term. However, if the market perceives the capital is being used effectively to accelerate value-creating projects, there may be a positive long-term impact. It is also noteworthy that the offering is priced at the closing market price, which can be seen as a vote of confidence by the underwriters in the company's current valuation.
In the context of the biotech industry, Shattuck Labs' focus on bi-functional fusion proteins for cancer and autoimmune diseases is a sophisticated area of R&D that requires significant investment. The offering's proceeds may help Shattuck to maintain a competitive edge in this space. The ability to raise capital is often a reflection of investor belief in the potential of a company's technology and pipeline.
The biotech sector is highly volatile and dependent on clinical outcomes. Therefore, the long-term success of this financial move will be closely tied to the results of their ongoing and future clinical trials. Investors and analysts will be monitoring the progress of these trials to assess the efficacy and safety of the company's product candidates, which will be critical in determining the return on investment for the newly raised capital.
From a medical research perspective, the capital raised by Shattuck Labs is vital for sustaining the lengthy and costly process of drug development. The bi-functional fusion proteins being developed by Shattuck represent a novel approach in targeting diseases, which could potentially offer improved outcomes over existing therapies if proven effective in clinical trials.
Investors should be aware that drug development is inherently risky, with many candidates failing to make it to market. The successful development and eventual FDA approval of Shattuck’s candidates could, however, result in substantial returns. The financial health of the company, as bolstered by this offering, is crucial to support the continuation of their research activities and to navigate the regulatory landscape.
AUSTIN, TX and DURHAM, NC, Dec. 21, 2023 (GLOBE NEWSWIRE) -- Shattuck Labs, Inc. (“Shattuck” or the “company”) (NASDAQ: STTK), a clinical-stage biotechnology company pioneering the development of bi-functional fusion proteins as a new class of biologic medicine for the treatment of patients with cancer and autoimmune disease, today announced the pricing of a registered offering of 4,651,163 shares of common stock, par value
Evercore ISI is acting as sole book-running manager for the offering.
Shattuck intends to use the net proceeds from the registered offering and the private placement for the development of its pipeline candidates, including SL-172154, and working capital and general corporate purposes.
A shelf registration statement on Form S-3 (File No. 333-263553) relating to the registered offering was filed with the Securities and Exchange Commission (“SEC”) on March 15, 2022 and declared effective on July 29, 2022. The registered offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of an effective registration statement. A final prospectus supplement and accompanying prospectus relating to the offering shares will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC’s website at http://www.sec.gov or by contacting Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055; by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities referenced herein, nor shall there be any sale of such 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 Shattuck Labs, Inc.
Shattuck Labs, Inc. (NASDAQ: STTK) is a clinical-stage biotechnology company pioneering the development of bi-functional fusion proteins as a new class of biologic medicine for the treatment of patients with cancer and autoimmune disease. Compounds derived from Shattuck’s proprietary Agonist Redirected Checkpoint, (“ARC®”), platform are designed to simultaneously inhibit checkpoint molecules and activate costimulatory molecules with a single therapeutic. The company’s lead SL-172154 (“SIRPα-Fc-CD40L”) program, which is designed to block the CD47 immune checkpoint and simultaneously agonize the CD40 pathway, is being evaluated in multiple Phase 1 trials. Shattuck has offices in both Austin, Texas and Durham, North Carolina.
Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws, including, but not limited to, Shattuck’s expectations regarding the completion of the registered offering and the private placement, the satisfaction of customary closing conditions with respect to the registered offering and the private placement and the anticipated use of proceeds. Words such as “may,” “will,” “intend,” “would,” “expect,” “believe,” “design,” “estimate,” “potential,” “develop,” “plan” or the negative of these terms, and similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While we believe these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties (including, without limitation, those set forth in our filings with the SEC), many of which are beyond our control and subject to change. Actual results could be materially different. Risks and uncertainties include: risks and uncertainties related to market and other conditions and the satisfaction of customary closing conditions related to the registered offering, and the other risks described in Shattuck’s Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent disclosure documents filed with the SEC. We claim the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as required by law.
The company intends to use the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.
Investor & Media Contact:
Conor Richardson
Vice President of Investor Relations
Shattuck Labs, Inc.
InvestorRelations@shattucklabs.com
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