Tourmaline Bio Announces Closing of $172.5 Million Public Offering of Common Stock, Including Full Exercise of the Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Tourmaline Bio, Inc. announced the closing of its underwritten public offering of 5,307,691 shares of common stock, grossing approximately $172.5 million. The offering was made pursuant to a shelf registration statement on Form S-3 and was declared effective on August 25, 2022. The company now has 25,645,262 shares of common stock issued and outstanding as of January 29, 2024.

Insights

Financial Analyst

The successful closing of Tourmaline Bio's public offering, which includes the full exercise of the underwriters' option for additional shares, indicates robust investor interest and confidence in the company's prospects. The capital raised, amounting to approximately $172.5 million before fees, provides a substantial financial runway for Tourmaline to advance its clinical programs targeting immune and inflammatory diseases. This influx of capital is likely to support the company's research and development efforts, potentially accelerating the timeline to bring new therapies to market.

From a financial perspective, the offering price of $32.50 per share can be seen as a benchmark for the company's valuation at this point in time. Investors and analysts will monitor the stock's performance relative to this price point closely. A premium on the offering price would suggest market optimism about Tourmaline's growth trajectory, whereas a discount could signal concerns about its future performance or market conditions. The impact of this capital increase on the company's earnings per share will also be an important metric to watch, as dilution could affect shareholder value in the short term.

Market Research Analyst

The biotechnology sector is highly competitive, with many players seeking to innovate in the treatment of immune and inflammatory diseases. The success of Tourmaline's funding round demonstrates the market's appetite for investment in companies that are nearing the end of their clinical trial phases. Market trends have shown that late-stage clinical companies often attract more investor attention due to the closer proximity of potential product commercialization and revenue generation.

Furthermore, the involvement of reputable financial institutions as joint book-running managers lends credibility to the offering and may have played a role in the successful capital raise. This offering could potentially affect Tourmaline's market position, as it may provide the necessary resources to outpace competitors in bringing new treatments to market. It is crucial for the company to efficiently allocate this new capital towards its most promising projects to maximize return on investment for shareholders.

Biotech Industry Analyst

The biotech industry is driven by innovation and the successful development of new treatments. Tourmaline's closing of its public offering is a significant milestone that reflects the company's progress and its potential to make a meaningful impact in the treatment of immune and inflammatory diseases. The ability to raise a substantial amount of capital suggests confidence in Tourmaline's research and development capabilities, as well as its strategic direction.

Analyzing the potential of Tourmaline's pipeline will be critical in assessing the long-term implications of this financial move. The company's ability to meet clinical endpoints and eventually gain regulatory approval will be the true test of the value of this investment. The capital will likely accelerate ongoing clinical trials and fund the steps necessary for regulatory submission, which is a pivotal phase in the biotech industry. Stakeholders will be particularly interested in how this financial boost will translate into tangible outcomes, such as the progression of lead candidates through the final stages of clinical trials and into the market.

NEW YORK, Jan. 29, 2024 (GLOBE NEWSWIRE) -- Tourmaline Bio, Inc. (“Tourmaline”) (Nasdaq: TRML), a late-stage clinical biotechnology company developing transformative medicines to dramatically improve the lives of patients with life-altering immune and inflammatory diseases, today announced the closing of its previously-announced underwritten public offering of 5,307,691 shares of its common stock, which includes the full exercise of the underwriters' option to purchase 692,307 additional shares, at a public offering price of $32.50 per share. The gross proceeds from the offering, before deducting underwriting discounts and commissions and offering expenses, were approximately $172.5 million. All shares of common stock were offered by Tourmaline. Following the closing of the offering, Tourmaline has 25,645,262 shares of common stock issued and outstanding as of January 29, 2024.

Jefferies, Piper Sandler, Guggenheim Securities and Truist Securities acted as joint book-running managers for the offering.

The offering was made pursuant to a shelf registration statement on Form S-3 that was filed with the Securities and Exchange Commission (“SEC”) on August 15, 2022 and was declared effective on August 25, 2022. The offering was made only by means of a prospectus supplement and the accompanying prospectus which forms a part of the effective shelf registration statement. A final prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC on January 26, 2024, 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 offering may be obtained from: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, telephone: (877) 821-7388, email: Prospectus_Department@Jefferies.com; Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, by telephone: (800) 747-3924, or by email: prospectus@psc.com; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, or by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com; Truist Securities, Inc., Attention: Prospectus Department, 3333 Peachtree Road NE, 9th floor, Atlanta, GA 30326, by telephone at (800) 685-4786, or by email at TruistSecurities.prospectus@Truist.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer or 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 such state or jurisdiction.

About Tourmaline Bio, Inc.

Tourmaline is a late-stage clinical biotechnology company driven by its mission to develop transformative medicines that dramatically improve the lives of patients with life-altering immune and inflammatory diseases.

About TOUR006

TOUR006 is a long-acting, fully-human, anti-IL-6 monoclonal antibody with best-in-class potential and differentiated properties including a naturally long half-life, low immunogenicity, and high binding affinity to IL-6. To date, TOUR006 has been studied in 448 participants, including patients with autoimmune disorders, across six clinical trials. Tourmaline is developing TOUR006 in TED and ASCVD as its first two indications, with additional diseases under consideration.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, express or implied statements regarding the therapeutic benefits of TOUR006.

Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Tourmaline’s control. Tourmaline’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to (i) the uncertainties associated with Tourmaline’s platform technologies, as well as risks associated with the clinical development and regulatory approval of product candidates, including potential delays in the commencement, enrollment and completion of clinical trials; (ii) risks related to the inability of Tourmaline to obtain sufficient additional capital to continue to advance its product candidates and its preclinical programs; (iii) uncertainties in obtaining successful clinical results for product candidates of Tourmaline and unexpected costs that may result therefrom; (iv) risks related to the failure to realize any value from product candidates and preclinical programs being developed and anticipated to be developed by Tourmaline in light of inherent risks and difficulties involved in successfully bringing product candidates to market; and (v) the impacts of general macroeconomic and geopolitical conditions, rising inflation, and uncertain credit and financial markets on Tourmaline’s business, clinical trials and financial position. These and other risks and uncertainties are more fully described in periodic filings with the SEC, including the factors described in the section titled “Risk Factors” in Tourmaline’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 or other similar headings found in documents Tourmaline files from time to time with the SEC. You should not place undue reliance on these forward-looking statements, which are made only as of the date hereof or as of the dates indicated in the forward-looking statements. Except as may be required under applicable law, Tourmaline expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. This press release does not purport to summarize all of the conditions, risks and other attributes of an investment in Tourmaline.

Investor Contact:
Lee M. Stern
Meru Advisors
lstern@meruadvisors.com

FAQ

What is the purpose of the press release?

The press release announces the closing of Tourmaline Bio, Inc.'s underwritten public offering of common stock.

How many shares were offered in the public offering?

5,307,691 shares of common stock were offered in the public offering.

What is the gross proceeds from the offering?

The gross proceeds from the offering were approximately $172.5 million.

What was the public offering price per share?

The public offering price per share was $32.50.

How many shares of common stock does Tourmaline have issued and outstanding as of January 29, 2024?

Tourmaline has 25,645,262 shares of common stock issued and outstanding as of January 29, 2024.