HAYWARD, Calif. - Benitec Biopharma Inc. (NASDAQ: BNTC), a clinical-stage biotechnology company, has announced securing $40 million through a private investment in public equity (PIPE) deal. The financing includes the sale of common stock and pre-funded warrants to institutional investors.
The transaction, led by Suvretta Capital Management, involves the sale of 5,749,152 shares at $4.80 per share, matching the closing price of Benitec's common stock on April 17, 2024. Additionally, pre-funded warrants to purchase up to 2,584,239 shares were sold at $4.7999 each. Participants in the oversubscribed PIPE include Adage Capital Partners, Nantahala Capital, various healthcare-focused funds, and a prominent mutual fund.
Benitec intends to allocate the net proceeds to advance the clinical development and potential commercialization of BB-301, a therapeutic candidate for Oculopharyngeal Muscular Dystrophy (OPMD). The funds will specifically support the natural history lead-in study and the Phase 1b/2a BB-301 treatment study, alongside general corporate purposes.
The completion of the PIPE financing is subject to standard closing conditions and is anticipated to be finalized by April 22, 2024. Leerink Partners and Citizens JMP have acted as placement agents for the financing.
As part of the agreement, long-term investor Suvretta Capital, leading the PIPE, will consider Kishen Mehta, a portfolio manager at Suvretta, for appointment to Benitec's board of directors.
This announcement is based on a press release statement.
InvestingPro Insights
In light of Benitec Biopharma Inc.'s recent PIPE deal, current and potential investors may find the following InvestingPro data and tips valuable for understanding the company's financial health and market position. According to InvestingPro, Benitec holds a market capitalization of approximately $12.44 million USD. The company's Price to Earnings (P/E) ratio stands at -0.55, reflecting investor sentiment about its earnings potential. It's also worth noting that the company's revenue for the last twelve months as of Q2 2024 was $0.06 million USD, indicating a challenging operational period with a revenue decline of -1.61%.
InvestingPro Tips suggest a mixed picture for Benitec. While the company holds more cash than debt, indicating a relatively strong balance sheet, analysts are concerned about its cash burn rate and do not expect profitability this year. The stock has also taken a significant hit over the last week, with a price total return of -22.95%. Nevertheless, Benitec has seen a strong return over the last three months, with a 63.13% price total return, and its liquid assets exceed short-term obligations, providing some financial flexibility.
For those considering deeper analysis, InvestingPro offers additional insights on Benitec Biopharma Inc. There are more InvestingPro Tips available that delve into the company's performance, valuation, and industry standing. To explore these further, investors can visit InvestingPro's dedicated page for BNTC, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With these tools, investors can make more informed decisions based on real-time data and expert analysis.
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