BOSTON - Elicio Therapeutics, Inc. (NASDAQ:ELTX), a clinical-stage biotech company, has announced the pricing of its underwritten public offering aimed at raising approximately $11.5 million before fees and expenses. The offering includes 500,000 shares of common stock, alongside warrants to purchase an equal number of shares at an exercise price of $5.00 per share.
Moreover, pre-funded warrants to purchase up to 1.8 million shares at $0.01 per share are being offered to certain investors, with accompanying warrants to purchase up to 1.8 million shares at $5.00 per share.
The combined public offering price is set at $5.00 per share for the common stock and accompanying warrants, and $4.99 for each pre-funded warrant and its accompanying warrant, reflecting the common stock's combined purchase price minus the exercise price for the pre-funded warrants. The accompanying warrants will become exercisable immediately and will expire five years from the date of issuance.
Elicio aims to close the offering by July 1, 2024, subject to customary closing conditions. The net proceeds are intended for the advancement of Elicio's development pipeline, which includes novel immunotherapies targeting aggressive cancers, as well as for working capital and general corporate purposes.
JonesTrading Institutional Services LLC is acting as the sole book-running manager for the offering. The securities are being offered pursuant to a shelf registration statement that became effective on June 11, 2024. Details regarding the offering can be found in the preliminary prospectus supplement filed with the SEC on June 27, 2024, and the final prospectus supplement will be available on the SEC's website.
This press release does not serve as an offer to sell or a solicitation of an offer to buy these securities and is based on a press release statement. The sale of these securities will not be lawful in any state or jurisdiction where prior registration or qualification under the securities laws of such state or jurisdiction is required.
InvestingPro Insights
Elicio Therapeutics, Inc. (NASDAQ:ELTX) has been navigating a challenging financial landscape as it seeks to raise capital through its latest public offering. InvestingPro data reveals a market capitalization of $70.66 million, underscoring the relatively small size of the biotech company in a sector that is known for its capital-intensive nature.
The company's cash burn is a critical factor for potential investors to consider, as indicated by an InvestingPro Tip that highlights ELTX's quick rate of cash consumption. This is particularly relevant as the company seeks to fund its development pipeline and requires a steady influx of capital to sustain operations.
Moreover, ELTX's gross profit margins have been identified as weak, another InvestingPro Tip that suggests the company struggles to retain earnings from its revenues, which could impact its ability to self-fund its research and development efforts over time.
With a Price / Book ratio last reported at 14.51, the company is trading at a high multiple, indicating that investors are paying a significant premium for its net assets, a point of consideration given that ELTX is not expected to be profitable this year and has not been profitable over the last twelve months.
For readers looking to delve deeper into the financial health and future prospects of Elicio Therapeutics, InvestingPro offers a comprehensive suite of additional tips. Currently, there are 5 more InvestingPro Tips available, providing insights that could prove invaluable for an informed investment decision. To access these tips and more detailed metrics, visit https://www.investing.com/pro/ELTX. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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