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

Rhea-AI Summary

Taysha Gene Therapies (Nasdaq: TSHA) has announced a public offering of up to $75 million in common stock and pre-funded warrants. This offering allows certain investors the option to purchase pre-funded warrants instead of common stock. Additionally, underwriters Jefferies, Goldman Sachs, and Cantor have a 30-day option to buy up to 15% more shares under the same terms. The offering is dependent on market conditions, and there is no guarantee of its completion or terms. A previously filed and approved shelf registration statement with the SEC covers the securities. The offering will proceed via a prospectus and prospectus supplement filed with the SEC. Copies of these documents are available from Jefferies or Goldman Sachs.

Positive

• Potential to raise $75 million in capital.
• Additional 15% share purchase option for underwriters.
• Funds may support further clinical development.

Negative

• Potential shareholder dilution from new stock issuance.
• Market conditions may affect the offering's completion.

Financial Analyst

Taysha Gene Therapies' decision to conduct a public offering of up to $75 million in common stock and pre-funded warrants signals a strategic move to bolster its financial resources. This is particularly relevant for a clinical-stage biotechnology company that requires substantial capital to push forward its research and development activities. The company’s focus on AAV-based gene therapies for severe CNS diseases is a high-risk, high-reward arena. The capital raise will likely fund ongoing trials and possibly other operational needs.

From an investor perspective, this can be viewed as both a positive and a negative indicator. On the positive side, the capital infusion can ensure that the company remains solvent and advances its high-potential pipeline. However, existing shareholders should be aware of the potential for dilution if the common stock offering is fully subscribed. Dilution occurs when a company issues more shares, reducing the ownership percentage for existing shareholders.

The inclusion of pre-funded warrants is an interesting choice. These are typically offered to investors who want to avoid immediate dilution but still desire future equity participation. They are usually priced slightly lower than common stock but come with a minimal exercise price. Given that Jefferies and Goldman Sachs are acting as joint book-running managers, there is a solid backing for the offering, which can inspire some confidence.

In summary, while the move may exert downward pressure on the stock price in the short-term due to dilution fears, the longer-term outlook hinges on how effectively Taysha utilizes these funds to advance its clinical programs. Retail investors should weigh the potential for short-term volatility against the long-term benefits of a well-capitalized company in a high-growth sector.

DALLAS, June 25, 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 that it has commenced an underwritten public offering of up to $75 million of shares of its common stock and, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase shares of its common stock. All of the securities will be offered by Taysha. Taysha also intends to grant 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 under the same terms and conditions (including shares underlying the pre-funded warrants). The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the offering.

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 proposed 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 will be 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 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, when available, 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 anticipated public offering, including the uncertainties related to market conditions and the completion of the public offering on the anticipated terms, if 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 public offering is up to $75 million in common stock and pre-funded warrants.

Who are the underwriters for TSHA's public offering?

Jefferies, Goldman Sachs, and Cantor are the underwriters.

What is the purpose of Taysha Gene Therapies' stock offering?

The funds raised may support further clinical development.

What is the option available to underwriters in TSHA's offering?

Underwriters have a 30-day option to purchase up to an additional 15% of the shares.

Where can I find the prospectus for Taysha Gene Therapies' offering?

The prospectus is available on the SEC's website or by contacting Jefferies or Goldman Sachs.