Xenon Pharmaceuticals Announces Proposed Public Offering of Common Shares

Rhea-AI Summary

Xenon Pharmaceuticals (Nasdaq:XENE) has initiated an underwritten public offering of its common shares, including pre-funded warrants for select investors. The offering is made under its existing shelf registration statement, with underwriters given a 30-day option to purchase an additional 15% of the shares offered. The transaction, led by Jefferies, Stifel, and William Blair, is subject to market conditions and may not be completed as anticipated. No shares will be sold in Canada, and a preliminary prospectus will be filed with the SEC.

Positive

• Potential capital influx from the public offering to support company growth.
• Underwriters' option to purchase additional shares may signal confidence in the offering.

Negative

• Possible dilution of existing shareholders if additional shares are issued.
• Market uncertainties may affect the successful completion of the offering.

BURNABY, British Columbia, March 09, 2021 (GLOBE NEWSWIRE) --  Xenon Pharmaceuticals Inc. (Nasdaq:XENE), a clinical stage biopharmaceutical company, today announced that it has commenced an underwritten public offering of its common shares and, in lieu of common shares to certain investors that so choose, pre-funded warrants to purchase 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 15% of the common shares offered in the offering, 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, Stifel, and William Blair are acting as joint book-running managers for the offering. Needham & Company and Wedbush PacGrow are acting as co-managers for the offering.

A shelf registration statement relating to the common shares offered in the public offering described above was filed with the Securities and Exchange Commission (SEC) on June 3, 2020 and declared effective by the SEC on June 12, 2020. 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; from Stifel, Nicolaus & Company, Incorporated, One Montgomery Street, Suite 3700, San Francisco, California 94104, Attn: Syndicate, or by phone at (415) 364-2720 or by email at syndprospectus@stifel.com; or from William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, telephone: 1-800-621-0687, or by email: prospectus@williamblair.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.

Xenon Investor/Media Contact:
Jodi Regts
Xenon Pharmaceuticals Inc.
Phone: 604.484.3353
Email: investors@xenon-pharma.com 

FAQ

What is the purpose of the public offering by XENE?

The public offering aims to raise capital to support Xenon Pharmaceuticals' growth initiatives.

Who are the underwriters for the XENE stock offering?

Jefferies, Stifel, and William Blair are acting as joint book-running managers for the offering.

What is the size of the offering by Xenon Pharmaceuticals?

The size of the offering has not been explicitly stated, but the underwriters have a 30-day option to purchase an additional 15% of the shares.

Will the XENE offering affect existing shareholders?

Yes, there is a risk of dilution for existing shareholders if additional shares are issued.

When was the shelf registration statement for XENE filed?

The shelf registration statement was filed with the SEC on June 3, 2020, and declared effective on June 12, 2020.