Protara Announces Proposed Public Offering

Rhea-AI Summary

Protara Therapeutics (Nasdaq: TARA) has announced the commencement of an underwritten public offering of common stock shares and pre-funded warrants. The company plans to grant underwriters a 30-day option to purchase additional shares at the public offering price, less underwriting discounts and commissions. The net proceeds will be used to fund the clinical development of TARA-002 and other clinical programs, along with working capital and general corporate purposes. TD Cowen, Cantor, LifeSci Capital, Oppenheimer & Co., and Scotiabank are acting as joint book-running managers. The securities will be issued under a shelf registration statement that was declared effective on November 14, 2023.

Positive

• Secured multiple prominent financial institutions as joint book-running managers
• Proceeds will support development of lead product TARA-002 and pipeline expansion

Negative

• Potential dilution of existing shareholders' value through new share issuance
• Offering size and terms not yet determined, indicating uncertainty
• Company requires additional funding for clinical development, suggesting cash burn

Insights

Financial Analyst

This public offering announcement signals significant capital-raising activity for Protara Therapeutics, with a focus on funding clinical development of TARA-002 and other pipeline programs. The offering structure, including common stock and pre-funded warrants, provides flexibility for different investor preferences. The involvement of multiple prominent underwriters (TD Cowen, Cantor, LifeSci Capital, Oppenheimer & Co. and Scotiabank) adds credibility to the offering.

Given Protara's current market cap of $113.4M, this offering will likely result in notable dilution for existing shareholders. However, the capital raise is important for advancing their clinical programs. The inclusion of a 30-day option for underwriters to purchase additional shares suggests confidence in market demand. The shelf registration (S-3) being already effective streamlines the process, though final terms and pricing remain undisclosed.

Medical Research Analyst

The primary focus of this capital raise on TARA-002's clinical development is strategically important for Protara's pipeline advancement. TARA-002 represents a key asset in their portfolio for cancer and rare disease treatment. The company's decision to secure additional funding suggests confidence in their clinical development pathway and the potential market opportunity for their therapeutic candidates.

The allocation of proceeds towards multiple clinical programs indicates a balanced approach to pipeline development, though specific program details and development timelines aren't disclosed. This funding round is critical for maintaining momentum in clinical trials and potentially accelerating development timelines, which could impact their competitive position in the oncology and rare disease spaces.

NEW YORK, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Protara Therapeutics, Inc. (Nasdaq: TARA) (“Protara”), a clinical-stage company developing transformative therapies for the treatment of cancer and rare diseases, today announced that it has commenced an underwritten public offering of shares of its common stock or, in lieu of issuing common stock to certain investors, pre-funded warrants to purchase shares of its common stock. All of the shares of common stock and pre-funded warrants to be sold in the proposed offering will be offered by Protara. In addition, Protara expects to grant the underwriters a 30-day option to purchase additional shares of common stock at the public offering price, less underwriting discounts and commissions. The proposed 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. Protara intends to use the net proceeds received from the offering to fund the clinical development of TARA-002, as well as the development of other clinical programs. Protara may also use the net proceeds from the offering for working capital and other general corporate purposes.

TD Cowen, Cantor, LifeSci Capital, Oppenheimer & Co. and Scotiabank are acting as joint book-running managers of the proposed offering.

The shares of common stock and the pre-funded warrants will be issued pursuant to a shelf registration statement on Form S-3 (File No. 333-275290) that was declared effective on November 14, 2023 by the U.S. Securities and Exchange Commission (the “SEC”). The offering is being made only by means of a preliminary prospectus supplement and the accompanying prospectus. A preliminary prospectus supplement and the accompany prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and the accompany prospectus relating to the offering, when available, may be obtained from the offices of TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, New York 10017, by email at TD.ECM_Prospectus@tdsecurities.com or by telephone at (855) 495-9846; Cantor Fitzgerald & Co., 110 East 59th Street, 6th Floor, New York, New York 10022, Attention: Capital Markets, or by email at prospectus@cantor.com; or LifeSci Capital LLC, 1700 Broadway, 40th Floor, New York, New York 10019, or by email at compliance@lifescicapital.com.

Before investing in the offering, interested parties should read the preliminary prospectus supplement and related prospectus for this offering, the documents incorporated by reference therein and the other documents Protara has filed with the Securities and Exchange Commission. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the Securities and Exchange Commission.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities, 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 applicable securities laws of such state or jurisdiction.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Protara may, in some cases, use terms such as “predicts,” “believes,” “potential,” “proposed,” “continue,” “designed,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words or expressions referencing future events, conditions or circumstances that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such forward-looking statements include but are not limited to, statements regarding the timing, size and completion of the proposed public offering as well as the expected use of proceeds related thereto are not guarantees of future performance or results and involve substantial risks and uncertainties. Actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors including: Protara’s ability to complete the offering on the proposed terms, or at all, changes in market conditions, and Protara’s expectations related to the use of proceeds from the proposed offering. Additional important factors to be considered in connection with forward-looking statements, including additional risks and uncertainties, are described more fully under the caption “Risk Factors” and elsewhere in Protara’s filings and reports with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Protara undertakes no obligation to update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise, except as required by law.

Company Contact:

Justine O'Malley
Protara Therapeutics
Justine.OMalley@protaratx.com
646-817-2836

FAQ

What is the purpose of Protara Therapeutics' (TARA) public offering announced in December 2024?

The offering aims to raise funds for the clinical development of TARA-002, other clinical programs, working capital, and general corporate purposes.

Who are the underwriters for Protara's (TARA) December 2024 public offering?

TD Cowen, Cantor, LifeSci Capital, Oppenheimer & Co., and Scotiabank are acting as joint book-running managers for the offering.

When was Protara's (TARA) shelf registration statement declared effective?

The shelf registration statement (Form S-3, File No. 333-275290) was declared effective by the SEC on November 14, 2023.

What type of securities is Protara (TARA) offering in their December 2024 public offering?

Protara is offering shares of common stock and pre-funded warrants to purchase shares of common stock.