Xenon Pharmaceuticals Announces Proposed Public Offering

Rhea-AI Summary

Xenon Pharmaceuticals Inc. (Nasdaq: XENE) has initiated an underwritten public offering of $250 million in common shares, with an option for underwriters to purchase an additional $37.5 million. The offering is made under an existing shelf registration statement filed with the SEC. Notably, this process is subject to market conditions, and completion is not guaranteed. Notable underwriters include Jefferies, SVB Leerink, Stifel, and RBC Capital Markets. The company emphasizes that no securities are being offered in Canada.

Positive

• The public offering of $250 million provides potential funding for business growth.
• Underwriters have the option to purchase an additional $37.5 million, potentially increasing liquidity.

Negative

• The offering could lead to shareholder dilution.
• Market conditions remain uncertain, posing a risk to the successful completion of the offering.

BURNABY, British Columbia, Oct. 04, 2021 (GLOBE NEWSWIRE) -- Xenon Pharmaceuticals Inc. (Nasdaq: XENE), a clinical stage biopharmaceutical company, today announced that it has commenced an underwritten public offering of $250 million of its common shares pursuant to its existing shelf registration statement. It is expected that the underwriters of the offering will be granted an option for a period of 30 days to purchase up to an additional $37.5 million of common shares at the public offering price, less the underwriting discounts and commissions. 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.

Jefferies, SVB Leerink, Stifel and RBC Capital Markets are acting as joint book-running managers for the offering.

An automatically effective shelf registration statement relating to the securities offered in the public offering described above was filed with the Securities and Exchange Commission (SEC) on October 4, 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, 2nd Floor, New York, NY 10022, or by email at Prospectus_Department@Jefferies.com, or by phone at (877) 821-7388; SVB Leerink LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@svbleerink.com; Stifel, Nicolaus & Company, Incorporated, One Montgomery Street, Suite 3700, San Francisco, CA 94104, Attn: Syndicate, or by phone at (415) 364-2720, or by email at syndprospectus@stifel.com; or RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, New York, NY 10281, by telephone at 877-822-4089, or by email at equityprospectus@rbccm.com.

No securities are being offered or sold, directly or indirectly, in Canada or to any resident of Canada.

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.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. These forward-looking statements are not based on historical fact and include statements regarding the anticipated public offering. These forward-looking statements are based on current assumptions that involve risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from those expressed or implied by such forward-looking statements. These risks and uncertainties, many of which are beyond our control, include, but are not limited to, uncertainties related to market conditions and the completion of the public offering on the anticipated terms or at all, as well as the other risks identified in our filings with the SEC and the securities commissions in British Columbia, Alberta and Ontario. These forward-looking statements speak only as of the date hereof and we assume no obligation to update these forward-looking statements, and readers are cautioned not to place undue reliance on such forward-looking statements.

Media/Investor Contacts:
Maria McClean / Jodi Regts
Xenon Pharmaceuticals Inc.
Phone: 604-484-3353 / 778-999-5634
Email: investors@xenon-pharma.com

FAQ

What is Xenon Pharmaceuticals' recent public offering?

Xenon Pharmaceuticals has announced a public offering of $250 million in common shares, with an option for underwriters to buy an additional $37.5 million.

Who are the underwriters for Xenon Pharmaceuticals' offering?

Jefferies, SVB Leerink, Stifel, and RBC Capital Markets are the joint book-running managers for the offering.

What are the risks associated with Xenon Pharmaceuticals' stock offering?

The offering may cause shareholder dilution and is subject to uncertain market conditions, which may affect its completion.

When was Xenon Pharmaceuticals' public offering announced?

The public offering was announced on October 4, 2021.

Is the public offering by Xenon Pharmaceuticals available in Canada?

No, the offering is not being made directly or indirectly in Canada.