Tourmaline Bio Announces Pricing of Public Offering of Common Stock
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Insights
The announcement by Tourmaline Bio of an underwritten public offering of 4,615,384 shares at $32.50 per share is a significant financial event that could have a material impact on the company's capital structure and liquidity. The expected gross proceeds of $150 million suggest a strategic move to bolster the company's financial position, likely to fund ongoing research and development activities or to prepare for the commercialization of their products. The additional 30-day option for underwriters to purchase up to 692,307 shares indicates a potential further increase in capital, contingent on market demand.
From an investor's perspective, this offering could dilute existing shareholders but also provides the company with necessary funds to advance its pipeline, which could lead to long-term value creation if the clinical outcomes are positive. The market's response to this offering will be a key indicator of investor confidence in Tourmaline's future prospects.
Biotechnology firms like Tourmaline Bio frequently resort to public offerings to secure capital for high-cost endeavors such as clinical trials and drug development, which are capital-intensive and have long lead times before potential revenue generation. The pricing of the offering at $32.50 per share provides insights into the company's perceived value and market conditions. It is crucial to monitor the aftermarket performance of the stock to gauge investor sentiment and the success of the offering.
Analyzing the biotech sector's funding trends and comparing Tourmaline's offering to those of similar stage companies can provide context on the competitiveness and risks within the industry. The involvement of established financial institutions as joint book-running managers could also be seen as a vote of confidence in the company's potential and the quality of the offering.
The strategic use of a shelf registration statement indicates Tourmaline Bio's preparedness for capital raising, providing them with the flexibility to access the market quickly. The timing of the offering, in relation to their clinical trial phases or regulatory milestones, could be pivotal. If the proceeds are allocated towards late-stage trials or scaling up manufacturing in anticipation of a product launch, this could significantly accelerate the company's trajectory towards commercialization.
However, the biotech sector is inherently risky with a high rate of clinical failure. Stakeholders should consider the stage of development of Tourmaline's pipeline, the therapeutic areas they are targeting and the competitive landscape. Success in immune and inflammatory diseases can lead to substantial market opportunities, but the path is fraught with scientific and regulatory challenges.
NEW YORK, Jan. 25, 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 pricing of an underwritten public offering of 4,615,384 shares of its common stock, at a public offering price of
Jefferies, Piper Sandler, Guggenheim Securities and Truist Securities are acting as joint book-running managers for the offering.
The offering is being 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 will be made only by means of a prospectus supplement and the accompanying prospectus which forms a part of the effective shelf registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering was filed with the SEC on January 24, 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, when available, 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 completion, timing and size of the proposed offering.
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
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