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RegMed Investors (RMi) Research Note: Prime Medicine (PRME) Prices 19million share offering at $6.25

February 15, 2024 7:15am

PRME closed up +$0.24 to $6.86 with a negative pre-open of -$0.36 or -5.32% to $6.60

The gross proceeds to PRME from the offering, before deducting underwriting discounts and commissions and offering expenses, are expected to be approximately $140.0 million

J.P. Morgan, Jefferies, TD Cowen and BMO Capital Markets are acting as joint book-running managers for the proposed offering. Chardan is acting as the lead manager for the proposed offering

PRME has commenced an underwritten public offering of 19.200,001 million of shares of its common stock.

The usual:

Prime Medicine also intends to grant the underwriters a 30-day option to purchase up to an additional shares of common stock offered in the public offering.
In lieu of common stock to certain investors, pre-funded warrants to purchase 3,200,005 shares of common stock at a public offering price of $6.24999 per pre-funded warrant, which represents the per share public offering price of each share of common stock less the $0.00001 per share exercise price for each pre-funded warrant.
All of the shares of common stock in the proposed offering are to be sold by PRME.
The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

The Bottom Line: Pricing will be question…?

Twenty days ago, Cystic Fibrosis Foundation (CF Foundation) has agreed to provide the Company with up to $15 million to support the development of Prime Editors for the treatment of Cystic Fibrosis (CF).

Pipeline: Complete first IND filing as early as 2024 with additional IND filings anticipated in 2025?

Cash (Q3): $165.3 M

Debt: $17.04

Q3 Operating cash flow: -$51.459 M

Big Q spend on G&A (Q3/23) - $10.5 M ended in 9/30/23

Ranges:

52-week: -65.82%
High of $20.37 and a low of $5.54
50 day moving average: 7.87 and a 200-day moving average 10.79

Net loss for Q3/23: $50.7 M or -$0.55

Shares outstanding: 97.32 M

Float: 35.52 M

Held by insiders: 31.86%

Held by institutions: 60.57%

Short ratio: 16.21

Short 5 of float: 33.79%

35 companies, 1 interpreter!

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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