Taysha Gene Therapies Announces Pricing of Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Taysha Gene Therapies (Nasdaq: TSHA), a clinical-stage biotech company specializing in AAV-based gene therapies for severe CNS diseases, has announced the pricing of its public offering. The offering includes 14,361,113 shares of common stock at $2.25 per share and pre-funded warrants for 18,972,221 shares at $2.249 per warrant. Gross proceeds are expected to be approximately $75 million before underwriting discounts and expenses. An additional 15% of shares may be available to underwriters within 30 days. The offering is set to close around June 27, 2024, pending usual conditions. Jefferies and Goldman Sachs are the lead book-running managers, with Cantor also participating.

Positive

• Taysha Gene Therapies is expected to raise approximately $75 million from the public offering.
• The offering will help fund the company's ongoing clinical development and other business activities.
• Jefferies, Goldman Sachs, and Cantor are reputable firms managing the offering, potentially increasing investor confidence.

Negative

• The issuance of new shares and pre-funded warrants will dilute existing shareholders' equity.
• The share price is offered at a discount, potentially indicating lower market confidence in the stock.

Financial Analyst

The recent public offering by Taysha Gene Therapies is a significant development for the company. Pricing their common stock at $2.25 per share and pre-funded warrants at $2.249 per warrant, they aim to raise approximately $75 million. This influx of capital will bolster their financial position but also dilutes the share value for existing shareholders.

From a financial perspective, the move reveals an immediate need for capital, possibly to fund ongoing clinical trials or other operational expenses. However, the pricing hints at a modest valuation, which could indicate market skepticism about the company's near-term prospects.

Retail investors should consider the dilution effect on their existing shares and weigh it against the potential for future growth driven by the new capital.

Market Research Analyst

The involvement of renowned underwriters like Jefferies and Goldman Sachs is a positive signal, as these firms have stringent vetting processes and reputations at stake. Their participation typically suggests a degree of confidence in Taysha's business model and future prospects.

However, the offering's success will depend significantly on market conditions and investor sentiment towards biotech stocks, which can be volatile. The company's focus on AAV-based gene therapies for CNS diseases is a niche but promising sector, though it carries inherent risks related to clinical trial outcomes and regulatory approvals.

Investors should be aware of these market dynamics and the potential high rewards and risks associated with investing in early-stage biotechs.

DALLAS, June 26, 2024 (GLOBE NEWSWIRE) -- Taysha Gene Therapies, Inc. (Nasdaq: TSHA), a clinical-stage biotechnology company focused on advancing adeno-associated virus (AAV)-based gene therapies for severe monogenic diseases of the central nervous system (CNS), today announced the pricing of an underwritten public offering of 14,361,113 shares of its common stock at a price to the public of $2.25 per share and, in lieu of common stock to certain investors, pre-funded warrants to purchase 18,972,221 shares of its common stock at an offering price of $2.249 per pre-funded warrant, in each case before underwriting discounts and commissions. All of the securities are being offered by Taysha. In addition, Taysha has granted the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock offered in the public offering at the public offering price, less the underwriting discount. The gross proceeds from the offering to Taysha are expected to be approximately $75 million, before deducting underwriting discounts and commissions and other offering expenses, excluding any exercise of the underwriter’s option to purchase additional shares. The offering is expected to close on or about June 27, 2024, subject to customary closing conditions.

Jefferies and Goldman Sachs & Co. LLC are acting as joint book-running managers for the offering, and Cantor is also serving as a book-running manager for the offering.

A shelf registration statement relating to the securities offered in the public offering described above was filed with the Securities and Exchange Commission (the “SEC”) on October 5, 2021, and declared effective by the SEC on October 14, 2021. The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at www.sec.gov. A final prospectus supplement and accompanying prospectus will be filed with the SEC. When available, copies of the final prospectus supplement and the accompanying prospectus may also be obtained by contacting Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, or by telephone at (877) 821-7388, or by e-mail at Prospectus_Department@Jefferies.com; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at Prospectus-ny@ny.email.gs.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities being offered, nor shall there be any sale of the securities being offered 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.

About Taysha Gene Therapies

Taysha Gene Therapies (Nasdaq: TSHA) is a clinical-stage biotechnology company focused on advancing AAV-based gene therapies for severe monogenic diseases of the central nervous system. Its lead clinical program TSHA-102 is in development for Rett syndrome, a rare neurodevelopmental disorder with no approved disease-modifying therapies that address the genetic root cause of the disease. With a singular focus on developing transformative medicines, Taysha aims to address severe unmet medical needs and dramatically improve the lives of patients and their caregivers. The Company’s management team has proven experience in gene therapy development and commercialization. Taysha leverages this experience, its manufacturing process and a clinically and commercially proven AAV9 capsid in an effort to rapidly translate treatments from bench to bedside.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “expects,” “intends,” “projects,” “plans,” and “future” or similar expressions are intended to identify forward-looking statements. Forward-looking statements include statements concerning the potential of TSHA-102 and Taysha’s other product candidates, to positively impact quality of life and alter the course of disease in the patients Taysha seeks to treat, its research, development and regulatory plans for its product candidates, and its public offering, including expected gross proceeds and anticipated closing date, the uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all. Forward-looking statements are based on management’s current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied by such forward-looking statements. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Risks regarding Taysha’s business are described in detail in its SEC filings, including in Taysha’s Annual Report on Form 10-K for the full-year ended December 31, 2023, which is available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that Taysha makes from time to time with the SEC. These forward-looking statements speak only as of the date hereof, and Taysha disclaims any obligation to update these statements except as may be required by law.

Company Contact:  

Hayleigh Collins
Director, Head of Corporate Communications and Investor Relations
Taysha Gene Therapies, Inc.
hcollins@tayshagtx.com

Media Contact: 

Carolyn Hawley
Inizio Evoke
Carolyn.hawley@inizioevoke.com

FAQ

What is the size of Taysha Gene Therapies' public offering?

The offering includes 14,361,113 shares of common stock and pre-funded warrants for 18,972,221 shares.

At what price is Taysha Gene Therapies offering its shares and pre-funded warrants?

Shares are priced at $2.25 each and pre-funded warrants at $2.249 each.

How much does Taysha Gene Therapies expect to raise from the offering?

Taysha Gene Therapies expects to raise approximately $75 million before discounts and expenses.

When is Taysha Gene Therapies' public offering expected to close?

The offering is expected to close around June 27, 2024, subject to customary closing conditions.

Which firms are managing Taysha Gene Therapies' public offering?

Jefferies, Goldman Sachs, and Cantor are acting as book-running managers for the offering.

What is the ticker symbol of Taysha Gene Therapies?

The ticker symbol for Taysha Gene Therapies is TSHA.