Wave Life Sciences Announces Proposed Public Offering of Ordinary Shares and Pre-Funded Warrants

Rhea-AI Summary

Wave Life Sciences (Nasdaq: WVE) has announced a proposed public offering of $175 million in ordinary shares and pre-funded warrants. The biotechnology company, focused on RNA medicines, intends to grant underwriters a 30-day option to purchase additional ordinary shares up to 15% of the total offering. J.P. Morgan and Leerink Partners are acting as joint book-running managers, with Truist Securities and Mizuho as book-runners.

The offering is subject to market conditions and will be made through a prospectus and related supplement. A preliminary prospectus supplement and accompanying base prospectus will be filed with the SEC and available on their website. The final terms will be disclosed in a final prospectus supplement.

Positive

• Potential to raise $175 million in capital
• Opportunity for additional 15% shares purchase by underwriters
• Involvement of reputable financial institutions as book-running managers

Negative

• Potential dilution of existing shareholders' equity
• Uncertainty regarding the completion and final terms of the offering
• Market conditions may affect the success of the offering

Insights

Financial Analyst

Wave Life Sciences' proposed public offering of $175 million in ordinary shares and pre-funded warrants is a significant capital-raising event. This move could substantially strengthen the company's financial position, potentially extending its runway for clinical trials and R&D activities in RNA medicines. The inclusion of pre-funded warrants offers flexibility to certain investors and may help attract a broader investor base. The 15% overallotment option for underwriters could potentially increase the total raised. However, this offering will likely result in dilution for existing shareholders. The involvement of major underwriters like J.P. Morgan and Leerink Partners lends credibility to the offering. Investors should closely monitor the final terms and pricing of the offering, as well as how Wave plans to utilize these funds to advance its clinical-stage pipeline and potentially accelerate its path to commercialization.

Biotechnology Expert

This public offering is a important step for Wave Life Sciences, a clinical-stage biotech focusing on RNA medicines. The substantial $175 million raise, if successful, could significantly bolster their research and development efforts in this cutting-edge field. RNA-based therapies have shown immense potential in treating various diseases and this capital injection could accelerate Wave's progress in unlocking new therapeutic possibilities. The company's focus on "transforming human health" through RNA medicines aligns with current trends in biotechnology, where precision medicine and novel modalities are gaining traction. However, investors should be aware that clinical-stage biotechs carry inherent risks, as the path to FDA approval is long and uncertain. The success of this offering and subsequent use of funds will be critical in determining Wave's ability to advance its pipeline and potentially bring innovative RNA-based treatments to market.

CAMBRIDGE, Mass., Sept. 24, 2024 (GLOBE NEWSWIRE) -- Wave Life Sciences Ltd. (Nasdaq: WVE), a clinical-stage biotechnology company focused on unlocking the broad potential of RNA medicines to transform human health, announced today that it has commenced an underwritten public offering of $175 million in aggregate of its ordinary shares, and, to certain investors that so choose in lieu of ordinary shares, pre-funded warrants to purchase ordinary shares. In connection with the offering, Wave intends to grant the underwriters a 30-day option to purchase ordinary shares in an amount up to an additional 15% of the total amount of ordinary shares and shares underlying pre-funded warrants sold in the public offering on the same terms and conditions. All of the securities in the offering will be sold by Wave Life Sciences.

J.P. Morgan and Leerink Partners are acting as joint book-running managers for the offering. Truist Securities and Mizuho are acting as book-runners for the offering. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

The offering will be made only by means of a prospectus and related prospectus supplement forming part of a shelf registration statement that was previously filed with and declared effective by the Securities and Exchange Commission (“SEC”). A preliminary prospectus supplement and accompanying base prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov, copies of which may be obtained, when available, from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com; or from Leerink Partners LLC, Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, or by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor will there be any sale of these securities in any state or other jurisdiction in which such an 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 Wave Life Sciences

Wave Life Sciences (Nasdaq: WVE) is a biotechnology company focused on unlocking the broad potential of RNA medicines to transform human health. Wave’s RNA medicines platform, PRISM^®, combines multiple modalities, chemistry innovation and deep insights in human genetics to deliver scientific breakthroughs that treat both rare and prevalent disorders. Its toolkit of RNA-targeting modalities includes editing, splicing, RNA interference and antisense silencing, providing Wave with unmatched capabilities for designing and sustainably delivering candidates that optimally address disease biology. Wave’s diversified pipeline includes clinical programs in Duchenne muscular dystrophy, Alpha-1 antitrypsin deficiency and Huntington’s disease, as well as a preclinical program in obesity. Driven by the calling to “Reimagine Possible”, Wave is leading the charge toward a world in which human potential is no longer hindered by the burden of disease. Wave is headquartered in Cambridge, MA. 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements include statements regarding the proposed public offering of ordinary shares and pre-funded warrants to purchase ordinary shares, including Wave’s expectations regarding the size of the proposed public offering. These statements are subject to various risks and uncertainties, actual results could differ materially from those projected and Wave cautions investors not to place undue reliance on the forward-looking statements in this press release. These risks and uncertainties include, without limitation, risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the public offering. There can be no assurance that Wave will be able to complete the public offering on the anticipated terms, or at all. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, the risks and uncertainties described in the section entitled “Risk Factors” in Wave’s preliminary prospectus supplement related to the proposed offering to be filed with the SEC and Wave’s most recent Annual Report on Form 10-K filed with the SEC, as amended, and in other filings Wave makes with the SEC from time to time. Wave undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances.

Investor Contact:
Kate Rausch
+1 617-949-4827
krausch@wavelifesci.com

Media Contact:
Alicia Suter
+1 617-949-4817
asuter@wavelifesci.com

FAQ

What is the size of Wave Life Sciences' proposed public offering?

Wave Life Sciences (WVE) has announced a proposed public offering of $175 million in aggregate of its ordinary shares and pre-funded warrants.

Who are the underwriters for Wave Life Sciences' public offering?

J.P. Morgan and Leerink Partners are acting as joint book-running managers, while Truist Securities and Mizuho are acting as book-runners for the offering.

What is the purpose of Wave Life Sciences' public offering?

While not explicitly stated in the press release, public offerings are typically conducted to raise capital for various corporate purposes such as research and development, expansion, or debt repayment.

When will the final terms of Wave Life Sciences' offering be disclosed?

The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC. The exact date is not specified in the press release.