Zevra Therapeutics Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Zevra Therapeutics (Nasdaq: ZVRA) has announced a proposed underwritten public offering of its common stock. The company plans to offer all shares and grant underwriters a 30-day option to purchase up to an additional 15% of shares at the public offering price. Cantor and William Blair are acting as joint book-running managers. The offering is subject to market conditions, with no assurance of completion or final terms. It will be made through a prospectus supplement and accompanying prospectus filed with the SEC. This announcement does not constitute an offer to sell or solicitation of an offer to buy securities.

Positive

• Potential to raise significant capital for company operations and growth
• Underwritten by reputable firms Cantor and William Blair
• 30-day option for underwriters to purchase additional shares, potentially increasing capital raised

Negative

• Potential dilution of existing shareholders' ownership
• Uncertainty regarding the offering's completion and final terms
• Market reaction to the offering may negatively impact stock price

News Market Reaction

-10.55%

1 alert

-10.55% News Effect

On the day this news was published, ZVRA declined 10.55%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

CELEBRATION, Fla., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Zevra Therapeutics, Inc. (Nasdaq: ZVRA), a rare disease therapeutics company (“Zevra”), today announced the commencement of a proposed underwritten public offering of its common stock. All shares of common stock to be sold in the proposed offering will be sold by Zevra. Zevra also expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the number of shares of its common stock offered in the public offering at the public offering price, less underwriting discounts and commissions. The proposed 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.

Cantor and William Blair are acting as joint book-running managers for the offering.

The securities described above are being offered by Zevra pursuant to a registration statement on Form S-3 (Registration No. 333- 279941), which was filed with the Securities and Exchange Commission (the “SEC”) on June 4, 2024, and became effective on June 13, 2024. The offering is being made only by means of a prospectus supplement and the accompanying prospectus that will form a part of the registration statement. A preliminary prospectus supplement related to the offering (including the accompanying prospectus) will be filed with the SEC and may be obtained, when available, by visiting the SEC’s website at http://www.sec.gov. Copies of the preliminary prospectus supplement and the accompanying prospectus may also be obtained, when available, by contacting: Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, New York 10022, or by email at prospectus@cantor.com or William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, Illinois 60606, by telephone at (800) 621-0687 or by email at prospectus@williamblair.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sales of the securities 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 Zevra Therapeutics:

Zevra Therapeutics is a rare disease company combining science, data, and patient needs to create transformational therapies for diseases with limited or no treatment options. Zevra’s mission is to bring life-changing therapeutics to people living with rare diseases. With unique, data-driven development and commercialization strategies, Zevra is overcoming complex drug development challenges to make new therapies available to the rare disease community.

Cautionary Note Concerning Forward-Looking Statements:

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and which can be identified by the use of words such as “may,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “assume,” “intend,” “potential,” “continue” or other similar words or the negative of these terms, although not all forward-looking statements contain these identifying words or expressions. Forward-looking statements are not guarantees of future actions or performance. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding anticipated consummation of the proposed offering, market conditions, the satisfaction of customary closing conditions related to the proposed offering, the completion of the offering on the anticipated terms or at all and general economic conditions. Forward-looking statements are based on information currently available to Zevra and its current plans or expectations. They are subject to several known and unknown uncertainties, risks, and other important factors that may cause Zevra’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These and other important factors are described in detail in the “Risk Factors” section of Zevra’s Annual Report on Form 10-K for the year ended December 31, 2023, subsequent Quarterly Reports on Form 10-Q, and other filings with the SEC. While Zevra may elect to update such forward-looking statements at some point in the future, except as required by law, Zevra disclaims any obligation to do so, even if subsequent events cause Zevra’s views to change. Although Zevra believes the expectations reflected in such forward-looking statements are reasonable, Zevra cannot assure that such expectations will prove correct. These forward-looking statements should not be relied upon as representing Zevra’s views as of any date after the date of this press release.

Zevra Contact:
Nichol Ochsner
+1 (732) 754-2545
nochsner@zevra.com

Russo Partners Contacts:
Adanna G. Alexander, Ph.D.
+1 (646) 942-5603
adanna.alexander@russopartnersllc.com

FAQ

What is the purpose of Zevra Therapeutics' (ZVRA) proposed public offering?

Zevra Therapeutics (ZVRA) is proposing a public offering of common stock to raise capital, likely for funding operations, research and development, or other corporate purposes, although specific use of proceeds was not detailed in the announcement.

How many additional shares can underwriters purchase in Zevra's (ZVRA) offering?

Zevra Therapeutics (ZVRA) plans to grant underwriters a 30-day option to purchase up to an additional 15% of the number of shares offered in the public offering at the public offering price, less underwriting discounts and commissions.

Who are the underwriters for Zevra Therapeutics' (ZVRA) proposed public offering?

Cantor and William Blair are acting as joint book-running managers for Zevra Therapeutics' (ZVRA) proposed public offering of common stock.

When did Zevra Therapeutics' (ZVRA) registration statement for this offering become effective?

Zevra Therapeutics' (ZVRA) registration statement on Form S-3 (Registration No. 333-279941) for this offering became effective on June 13, 2024.