Tourmaline Bio Announces Proposed Public Offering of Common Stock
- None.
- None.
Insights
From a financial perspective, the public offering of common stock by Tourmaline Bio, Inc. represents a significant event that could influence the company's capital structure and stock liquidity. The decision to issue additional shares often reflects a need for capital, possibly to fund ongoing clinical trials or to accelerate the development of their product pipeline. Investors should closely monitor the terms of the offering, including the price per share and the total number of shares to be issued, as these factors will directly impact the earnings per share (EPS) and the company's overall market valuation.
Furthermore, the granting of a 30-day option to underwriters to purchase additional shares, up to 15% of the initial offering, is a common practice known as an 'over-allotment option' or 'greenshoe option'. This mechanism can provide additional capital flexibility and potentially stabilize the stock price post-offering. However, it also introduces the possibility of dilution for existing shareholders. The market's reaction to the offering will be telling of investor confidence in Tourmaline's future prospects.
The biotechnology sector is highly competitive and capital-intensive, with significant expenditures required for research and development. Tourmaline Bio's public offering could be an attempt to secure the necessary resources to stay competitive. A successful offering could enable the company to advance its clinical programs and potentially bring new therapies to market, addressing unmet medical needs in immune and inflammatory diseases.
It is essential to consider the timing of the offering and the market conditions. If investor sentiment towards the biotech sector is positive and liquidity is high, the offering could be well-received. Conversely, if market conditions are unfavorable or if there are concerns about the sector or the company's prospects, the offering might struggle to attract investors, potentially leading to unfavorable terms for Tourmaline.
In the context of the biotechnology industry, the progress of clinical trials and the ability to fund them are critical for a company's success. Tourmaline Bio's decision to launch a public offering could signal that they are nearing important milestones in their clinical development pathway. Potential investors and stakeholders should assess the company's clinical trial data, pipeline potential and regulatory strategy to determine the likelihood of commercial success.
Additionally, partnerships with investment banks such as Jefferies, Piper Sandler, Guggenheim Securities and Truist Securities, which are acting as joint book-running managers, suggest a level of credibility and support in the financial community. These banks' involvement could be instrumental in ensuring the offering reaches a broad range of institutional and retail investors, thus maximizing capital raised.
NEW YORK, Jan. 24, 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 launch of a proposed underwritten public offering of its common stock. All shares of common stock to be sold in the proposed offering will be sold by Tourmaline. In addition, Tourmaline expects to grant the underwriters a 30-day option to purchase a number of additional shares not to exceed
Jefferies, Piper Sandler, Guggenheim Securities and Truist Securities are acting as joint book-running managers for the offering.
The proposed offering will be 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 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 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 accompanying prospectus relating to the offering may also 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 terms of the proposed offering and Tourmaline’s expectations with respect to granting the underwriters a 30-day option to purchase additional shares.
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 did Tourmaline Bio, Inc. announce?
What is the ticker symbol for Tourmaline Bio, Inc.?
Who are the joint book-running managers for the offering?
When was the shelf registration statement filed with the SEC?
Where can the preliminary prospectus supplement be obtained?
