Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Denali Therapeutics secures $500 million in private financing

EditorAhmed Abdulazez Abdulkadir
Published 02/27/2024, 08:46 AM
Updated 02/27/2024, 08:46 AM
© Reuters.

SOUTH SAN FRANCISCO - Denali Therapeutics Inc. (NASDAQ: NASDAQ:DNLI), a biopharmaceutical company focused on neurodegenerative and lysosomal storage diseases, has secured approximately $500 million through a private investment in public equity (PIPE) deal.

The transaction involves the sale of 3,244,689 common shares at $17.07 each and pre-funded warrants for 26,046,065 shares at $17.06 per warrant, with an exercise price of $0.01 per common share.

The company expects the deal to close on February 29, 2024, subject to standard closing conditions. The funds are earmarked for research and development, particularly the advancement of Denali's proprietary Transport Vehicle (TV) technology, which is designed to deliver therapeutics across the blood-brain barrier.

The financing round was led by a U.S.-based healthcare investor, with additional participation from global asset managers in Boston and the West Coast.

Denali's CEO, Ryan Watts, Ph.D., expressed enthusiasm for the partnership with shareholders, which is intended to accelerate the company's portfolio expansion. Post-financing, Denali anticipates its cash, cash equivalents, and investments will total around $1.5 billion, though this figure is a preliminary estimate and subject to change.

The securities sold in the PIPE have not been registered under the Securities Act of 1933 and are subject to restrictions on resale. Denali has committed to filing a registration statement with the SEC within 30 days post-closing for the resale of the common stock issued in the PIPE and the shares issuable upon exercise of the pre-funded warrants.

Denali Therapeutics, headquartered in South San Francisco, is dedicated to developing treatments that can cross the blood-brain barrier to address genetically validated targets for neurodegenerative diseases. The company's approach includes rigorous target assessment, blood-brain barrier delivery engineering, and biomarker-guided development.

This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.