SLDB stock is one of the biggest percentage gainers on the Nasdaq after Solid Biosciences Inc (NASDAQ:SLDB) announced a $60 million private placement with new and existing investors.
Massachusetts-based Solid Biosciences Inc made a major announcement today about a capital raise. The company stated that it is going to make a private placement of its stock worth $60 million, and it has already reached a security purchase agreement with investors as well as qualified institutional investors.
The whole process is going to close on July 30, and it goes without saying that it is a significant development for the company. Both the company’s existing investors, as well as new investors, are going to participate in this private placement. Bain Capital Life Sciences, Perceptive Advisors, LLC, Boxer Capital, and RA Capital Management, among others, are going to be the participants. It has also emerged that some of the members of the company’s board and officers are also going to participate in this private placement.
At the time of writing, SLDB stock is up 33% and trading at $5.75.
In this particular round of private placement, the shares are going to be sold for $4.65 each, and in total, 10,607,525 common stock shares are going to be put up for sale by Solid Biosciences. It needs to be pointed out that the price represents a premium when compared to the stock’s closing price on Thursday, July 25. However, that is not all. Solid Biosciences is also selling a total of 2,295,699 warrants of the pre-funded variant at the rate of $4.64 each.
This would be a significant capital raise, and the fact that the company has struck a premium in this private placement is perhaps an indication that it expects to sell them all.
The proceeds from this private placement are going to be used for the purposes of research and development, as well as for the development of its product SGT-001. In addition to that, the proceeds are also going to be used to bear expenses related to working capital. The next few days are going to be an exciting one for the company as it seeks to raise fresh capital for further growth.
However, despite today’s jump, SLDB stock is still down 80% year-to-date.
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