FOSTER CITY, Calif. - Geron (NASDAQ:GERN) Corporation (NASDAQ: GERN), a late-stage clinical biopharmaceutical company, has priced a significant underwritten offering of its securities, expected to gross approximately $150 million. The offering, announced today, includes over 41 million shares of common stock at $3.00 each, alongside pre-funded warrants to purchase an additional 8 million shares at $2.999 per warrant.
The transaction attracted a cohort of institutional investors, with names such as RA Capital Management, Fairmount, OrbiMed, and Farallon Capital Management leading the participation. Other notable investors include Adage Capital Partners, L.P., Boxer Capital, Vivo Capital, Deep Track Capital, and several large investment management firms. The offering is slated to close on March 21, 2024, contingent upon customary closing conditions.
Geron plans to allocate the net proceeds, after underwriting discounts and estimated expenses, toward the potential U.S. commercialization of its investigational drug imetelstat for low or intermediate-1 risk myelodysplastic syndromes, pending regulatory approvals.
Additionally, funds are earmarked for the potential launch and commercialization of imetelstat in the European Union and the continued development for its use in relapsed or refractory myelofibrosis. Any remaining capital is intended for general corporate purposes and working capital.
Joint book-running managers for the offering include TD Cowen, Stifel, and Barclays, with Wedbush PacGrow acting as the co-manager. The offering is backed by an automatically effective shelf registration statement filed with the Securities and Exchange Commission (SEC) on January 4, 2023. Relevant prospectus documents will be made available through the SEC's website and from the managing financial institutions.
Geron's imetelstat has been recognized for its novel approach as a telomerase inhibitor, targeting the fundamental drivers of hematologic malignancies. Despite the forward-looking nature of this press release, potential investors are reminded that the offering's completion and the anticipated use of proceeds are subject to market conditions and customary closing criteria.
Geron disclaims any obligation to update forward-looking statements to reflect events or circumstances after the date of this press release. This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
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