Terns Pharmaceuticals, Inc. Announces Closing of Initial Public Offering and Exercise in Full of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Terns Pharmaceuticals, Inc. (Nasdaq: TERN) has successfully closed its initial public offering of 7,500,000 shares at $17.00 each. Additionally, underwriters exercised their option to purchase 1,125,000 shares, leading to projected gross proceeds of approximately $146.6 million. This funding aims to support the development of Terns' pipeline targeting non-alcoholic steatohepatitis (NASH) and other chronic liver diseases. The offering was facilitated by J.P. Morgan, Goldman Sachs & Co. LLC, and Cowen. The shares were registered with the SEC, and the entire offering is expected to close by February 12, 2021.

Positive

• Gross proceeds of approximately $146.6 million expected from the offering, enhancing funding for development.
• The successful IPO provides capital to advance therapies for NASH and chronic liver diseases.

Negative

• Potential dilution of existing shares due to the new offering.

FOSTER CITY, Calif., Feb. 10, 2021 (GLOBE NEWSWIRE) -- Terns Pharmaceuticals, Inc. (“Terns” or the “Company”) (Nasdaq: TERN), a clinical-stage biopharmaceutical company developing a portfolio of small-molecule single-agent and combination therapy candidates for the treatment of non-alcoholic steatohepatitis, or NASH, and other chronic liver diseases, today announced the closing of the Company’s initial public offering of 7,500,000 shares of common stock at a public offering price of $17.00 per share, along with   the exercise in full by the underwriters of their option to purchase an additional 1,125,000 shares of common stock. The exercise of the underwriters’ option to purchase additional shares is expected to close on February 12, 2021, subject to customary closing conditions. After giving effect to the full exercise by the underwriters of their option to purchase additional shares, aggregate gross proceeds to the Company are expected to be approximately $146.6 million, before underwriting discounts, commissions and estimated offering expenses. All of the shares in the offering were offered by Terns. Terns’ common stock is listed on the Nasdaq Global Select Market under the ticker symbol “TERN.”

J.P. Morgan, Goldman Sachs & Co. LLC and Cowen are acting as joint book-running managers for the offering.

Registration statements relating to the shares being sold in this offering were declared effective by the Securities and Exchange Commission on February 4, 2021. The offering of these securities is being made only by means of a prospectus, copies of which may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by telephone at +1-866-803-9204 or by e-mail: prospectus-eq_fi@jpmchase.com, Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at +1-212-902-1171 or by e-mail: prospectus-ny@ny.email.gs.com or Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at +1-833-297-2926 or by e-mail: PostSaleManualRequests@broadridge.com.

This press release shall 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 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.

Contact:
Investor Relations Contact:
Mark Vignola
investors@ternspharma.com

Media Contact:
Cory Tromblee
media@ternspharma.com

FAQ

What are the key details of Terns Pharmaceuticals' IPO?

Terns Pharmaceuticals closed its IPO offering 7,500,000 shares at $17.00 per share, with an additional 1,125,000 shares purchased by underwriters, totaling about $146.6 million in gross proceeds.

When is the expected closing date for Terns' additional shares?

The expected closing date for the underwriters' additional shares is February 12, 2021.

How does the IPO impact Terns Pharmaceuticals shareholders?

The IPO may lead to dilution of existing shares due to the issuance of new shares.