SAN DIEGO - Avidity Biosciences, Inc. (NASDAQ: RNA), a biopharmaceutical company specializing in RNA therapeutics, has successfully raised approximately $400 million through an oversubscribed private placement. The company announced the sale of 15,224,773 common shares at $16.50 each, alongside pre-funded warrants for an additional 9,030,851 shares at $16.4990 per warrant, with an exercise price of $0.001 per share.
The private placement saw participation from both new and existing investors, including Adage Capital Partners LP, Boxer Capital, Casdin Capital, LLC, Farallon, Janus Henderson Investors, RA Capital Management, RTW Investments, Wellington Management, and several other large investment management firms. Leerink Partners, BofA Securities, Cantor, and Chardan served as placement agents for the transaction.
The proceeds from this financing are earmarked for funding ongoing research and development of Avidity's clinical-stage product candidates and other research programs. It will also support working capital and general corporate needs. With the addition of these funds to its existing capital, Avidity expects to have sufficient resources to sustain operations into late 2026.
The securities sold in this private placement have not been registered under the Securities Act of 1933 and are subject to market and other customary closing conditions. Avidity has committed to filing a registration statement with the U.S. Securities and Exchange Commission for the resale of the common stock and the shares issuable upon warrant exercise within 30 days following the placement's expected closure on March 4, 2024.
Additionally, Avidity is set to host the eighth installment of its investor and analyst event series on March 4, 2024, to present new data from the MARINA-OLE™ trial on AOC 1001, which is being developed for the treatment of myotonic dystrophy type 1 (DM1).
This article is based on a press release statement.
InvestingPro Insights
Avidity Biosciences, Inc. (NASDAQ: RNA) has shown a significant uptick in its stock price over recent months. According to InvestingPro data, the company has experienced a remarkable 95.39% return over the last three months and an even more impressive 101.85% return over the last six months. This performance is particularly notable given the company's current market capitalization of $1.21 billion.
In terms of financial health, Avidity Biosciences holds more cash than debt on its balance sheet, which is a positive sign for investors looking for a company with a solid liquidity position. This is further reinforced by the fact that the company's liquid assets exceed its short-term obligations, as highlighted by one of the InvestingPro Tips. However, analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months, with an operating income margin at -2191.0% for the last twelve months as of Q4 2023.
The InvestingPro platform offers a wealth of additional insights for those considering an investment in Avidity Biosciences. There are 8 more InvestingPro Tips available for RNA, which can be accessed at: https://www.investing.com/pro/RNA. For readers interested in taking a deeper dive into the company's analytics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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