BEDFORD, Mass. - Stoke Therapeutics, Inc. (NASDAQ:STOK), a biotechnology firm specializing in RNA-based medicines for severe diseases, announced its intention to launch a public offering of its common stock, aiming to raise up to $75 million.
Subject to market conditions, the company also plans to offer underwriters a 30-day option to purchase an additional 15% of the shares. The offering's completion and terms remain uncertain.
J.P. Morgan Securities LLC has been appointed as the sole book-running manager for the proposed offering. The funds raised are expected to support various company activities, including research, clinical and process development, and manufacturing of product candidates like STK-001 and STK-002, as well as general corporate purposes.
The offering is being made under a previously declared effective registration statement by the Securities and Exchange Commission (SEC) on May 31, 2022. Interested parties can obtain copies of the preliminary prospectus from J.P. Morgan Securities LLC upon request.
Stoke Therapeutics focuses on treating severe diseases by increasing protein expression using its proprietary TANGO approach. Its lead compound, STK-001, targets Dravet syndrome, a genetic epilepsy, while STK-002 is in development for autosomal dominant optic atrophy (ADOA).
The press release includes forward-looking statements regarding the offering, anticipated proceeds, and their intended use. These statements are subject to risks and uncertainties that could affect the actual results of the offering and the company's future operations.
This news is based on a press release statement from Stoke Therapeutics, Inc.
InvestingPro Insights
As Stoke Therapeutics, Inc. (NASDAQ:STOK) prepares for its public offering, potential investors can consider key financial metrics and analyst insights for a well-rounded view of the company's position. According to InvestingPro data, Stoke Therapeutics holds a market capitalization of approximately $476.47 million.
Despite a challenging revenue growth trend, with a decrease of 29.22% over the last twelve months as of Q4 2023, the company's gross profit margin stands at 100% for the same period. This suggests that while top-line growth has been negative, the company maintains a high level of profitability on the products it does sell.
The recent price dynamics of Stoke Therapeutics' stock indicate a significant return over the last three months, with a 23.57% increase, complemented by a remarkable 67.1% uptick over the last six months. This performance is reflected in the price of the stock, which closed at $6.5 USD prior to the announcement of the public offering.
Investors considering Stoke Therapeutics should note two InvestingPro Tips: Firstly, the company holds more cash than debt on its balance sheet, which may provide a cushion for its operations and investment plans. Secondly, the company is not expected to be profitable this year, according to analysts, which is a critical factor to consider in the context of its upcoming offering.
For those looking to delve deeper into Stoke Therapeutics' financials and forecasts, InvestingPro offers additional tips. There are a total of 9 InvestingPro Tips available that provide further insight into the company's financial health and market performance. To access these insights and optimize your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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