Entrada Therapeutics Announces $100 Million Registered Direct Offering

Rhea-AI Summary

Entrada Therapeutics (Nasdaq: TRDA), a clinical-stage biopharmaceutical company, announced a $100 million registered direct offering. The purchase involves 3,367,003 shares of common stock and pre-funded warrants to purchase an equal amount of common stock. The offering price per share is $14.85, while the pre-funded warrants are priced slightly lower at $14.8499 due to a minimal exercise price of $0.0001 per warrant. The offering is led by a U.S. healthcare investor, two global mutual funds, and Janus Henderson Investors. The funds will support ongoing clinical trials, research, and other corporate needs. The transaction is expected to close around June 25, 2024, subject to customary conditions.

Positive

• Raised $100 million through a registered direct offering.
• Led by reputable investors including a U.S.-based healthcare investor, two global mutual funds, and Janus Henderson Investors.
• Proceeds will fund the clinical development of ENTR-601-44, ENTR-601-45, and ENTR-601-50, along with ongoing R&D and corporate purposes.

Negative

• Potential dilution for existing shareholders due to the issuance of 3,367,003 new shares and pre-funded warrants.

Financial Analyst

The recent direct offering by Entrada Therapeutics is a significant move, raising $100 million from notable investors including a healthcare-focused investor, two global mutual funds and Janus Henderson Investors. This injection of capital will likely provide a solid foundation for the company's ambitious clinical development plans. The offering price of $14.85 per share and the pre-funded warrants priced at $14.8499 per warrant suggest confidence from investors in the company's future potential. The funding will primarily be channeled into advancing clinical trials of ENTR-601-44, ENTR-601-45 and ENTR-601-50, which could bring promising treatments to the market if successful.

From a financial perspective, this direct offering offers a dual benefit. In the short term, it significantly bolsters the company's cash reserves, providing the necessary runway to progress with clinical developments without immediate financial strain. In the long term, successful progress in these clinical trials could lead to significant returns, potentially increasing shareholder value. However, investors should be aware of the dilution of shares that might impact the stock price in the near term.

Overall, this move can be seen as a strategic effort to lay down the groundwork for future growth and development.

Medical Research Analyst

The allocation of the newly raised funds towards clinical trials for ENTR-601-44, ENTR-601-45 and ENTR-601-50 indicates a strong focus on advancing their pipeline of therapies targeting intracellular mechanisms. The specific mention of Phase 2b and multiple ascending dose trials emphasizes the company's commitment to rigorous testing and evaluation. These stages are critical in determining the efficacy and safety of the drugs before they can progress to the final phases of clinical trials and potential market approval.

For investors, this is a reassuring indication that Entrada Therapeutics is strategically deploying resources to maximize the likelihood of successful outcomes in their research endeavors. The success of these trials could potentially meet unmet medical needs, particularly in fields like neuromuscular and ocular diseases, which could create substantial value both clinically and financially.

– The offering was led by a U.S.-based healthcare focused investor, two global mutual funds and Janus Henderson Investors, a global asset management firm –

BOSTON, June 24, 2024 (GLOBE NEWSWIRE) -- Entrada Therapeutics, Inc. (Nasdaq: TRDA) is a clinical-stage biopharmaceutical company aiming to transform the lives of patients by establishing a new class of medicines that engage intracellular targets long considered inaccessible. The Company today announced that it has entered into a securities purchase agreement with a group of investors for the purchase of 3,367,003 shares of common stock and pre-funded warrants to purchase up to 3,367,003 shares of common stock in a registered direct offering for aggregate gross proceeds of approximately $100 million. The offering was led by a U.S.-based healthcare focused investor, two global mutual funds and Janus Henderson Investors, a global asset management firm.

The purchase price for the common stock is $14.85 per share and the purchase price for the pre-funded warrants is $14.8499 per warrant, which represents the per share purchase price for the common stock less the $0.0001 exercise price for the pre-funded warrant. The offering is expected to close on or about June 25, 2024, subject to the satisfaction of customary closing conditions.

Entrada expects to use the net proceeds from the offering to fund the ongoing clinical development of each of ENTR-601-44 and ENTR-601-45 through initiation of our planned Phase 2b clinical trials and ENTR-601-50 through initiation of our planned Phase 2 multiple ascending dose trial, the ongoing research and development of our development pipeline (including our neuromuscular and ocular franchises), and the remainder for working capital and other general corporate purposes.

The shares of common stock, pre-funded warrants and shares of common stock issuable upon the exercise of the pre-funded warrants were offered pursuant to a “shelf” registration statement that was previously filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 1, 2022 (File No. 333-268099) and declared effective by the SEC on November 7, 2022. A final prospectus supplement containing additional information relating to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Entrada Therapeutics
Entrada Therapeutics is a clinical-stage biopharmaceutical company aiming to transform the lives of patients by establishing a new class of medicines that engage intracellular targets that have long been considered inaccessible. The Company’s Endosomal Escape Vehicle (EEV™)-therapeutics are designed to enable the efficient intracellular delivery of a wide range of therapeutics into a variety of organs and tissues, resulting in an improved therapeutic index. Through this proprietary, versatile and modular approach, Entrada is advancing a robust development portfolio of RNA-, antibody- and enzyme-based programs for the potential treatment of neuromuscular, ocular, metabolic and immunological diseases, among others. The Company’s lead oligonucleotide programs are in development for the potential treatment of people living with Duchenne who are exon 44, 45 and 50 skipping amenable. Entrada has partnered to develop a clinical-stage program, VX-670, for myotonic dystrophy type 1.

For more information about Entrada, please visit our website, www.entradatx.com, and follow us on LinkedIn.

Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release, including statements regarding the expected closing of the offering and Entrada’s anticipated use of the net proceeds from the offering constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “predict,” “project,” “potential,” “should,” or “would,” or the negative of these terms, or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including, without limitation, the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the offering, as well as risks and uncertainties inherent in the Entrada’s business, including those described in Entrada’s periodic filings with the SEC. The events and circumstances reflected in Entrada’s forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Additional information on risks facing Entrada Therapeutics can be found under the heading “Risk Factors” in Entrada Therapeutics’ periodic reports, including its most recent Form 10-K and in subsequent filings Entrada may make with the SEC, each available on the SEC’s website at www.sec.gov. Except as required by applicable law, Entrada does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Investor and Media Contact
Caileigh Dougherty
Head of Investor Relations & Corporate Communications
cdougherty@entradatx.com

FAQ

What is the purpose of Entrada Therapeutics' $100 million direct offering?

The funds will support the clinical development of ENTR-601-44, ENTR-601-45, ENTR-601-50, ongoing research, and general corporate purposes.

Who led Entrada Therapeutics' recent $100 million direct offering?

The offering was led by a U.S.-based healthcare investor, two global mutual funds, and Janus Henderson Investors.

What is the purchase price for the common stock in Entrada Therapeutics' direct offering?

The purchase price for the common stock is $14.85 per share.

When is Entrada Therapeutics' $100 million direct offering expected to close?

The offering is expected to close on or about June 25, 2024, subject to customary conditions.

What is the ticker symbol for Entrada Therapeutics?

The ticker symbol for Entrada Therapeutics is TRDA.