Indication intelligence, analysis and sector perception

RegMed Investors (RMi) Research Note - Finance: Fate Therapeutics (FATE) prices a private placement and underwritten offering of 14,545,454 shares at $5.50 per share.

March 19, 2024 10:39am

FATE opened +$0.10 to $7.14

In addition, Fate priced a concurrent private placement of pre-funded warrants to purchase 3,636,364 shares of its common stock at a purchase price of $5.499 per pre-funded warrant, to certain institutional and other accredited investors affiliated with or managed by Redmile Group, LLC.

The offering includes participation from new and existing institutional investors: Adage Capital Partners LP., Boxer Capital, Deep Track Capital, OrbiMed, Suvretta Capital and a life-sciences focused investor.

The Bottom Line:

The gross proceeds from the underwritten offering and private placement are expected to be approximately $100.0 million before deducting underwriting discounts and commissions and other offering expenses.

BofA Securities, Jefferies, and Leerink Partners are acting as the joint bookrunning managers for the underwritten offering.

Whether the sector has legs is determined, as some have asked; I believe by the DEEP discount to the current pricing – thus questionable or no.

Stats:

Cash: $315.18 M

52-week range: high of $8.83 and low of $1.63

Shares outstanding: 99.24 M

Float: 77.99M

Short % of float: 17.40%

Short: 11.48 M (1/31/24)

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