REDWOOD CITY, Calif. - Soleno Therapeutics, Inc. (NASDAQ:SLNO), a biopharmaceutical company, has announced the pricing of its public offering of 3 million shares at $46 each, aiming to raise approximately $138 million before fees and expenses. The offering, which includes an option for underwriters to purchase additional shares, is set to close on May 7, 2024, subject to customary conditions.
The proceeds from the offering are intended to support the company's research and development, particularly the advancement of its lead drug candidate, DCCR tablets, for the treatment of Prader-Willi Syndrome (PWS). The funds may also cover general corporate purposes, which could include working capital, capital expenditures, and potential acquisitions, although no specific plans have been disclosed.
The underwriting team for the offering includes Piper Sandler, Guggenheim Securities, Cantor Fitzgerald & Co., and Oppenheimer & Co. as joint book-running managers, with Laidlaw & Company (UK) Ltd. serving as the lead manager.
Soleno's DCCR tablets have recently completed Phase 3 development, and the company is preparing for a planned New Drug Application (NDA) submission. The offering is being made through a prospectus supplement and accompanying prospectus as part of a registration statement that was declared effective by the Securities and Exchange Commission (SEC) on January 2, 2024.
This article is based on a press release statement from Soleno Therapeutics.
InvestingPro Insights
As Soleno Therapeutics, Inc. (NASDAQ:SLNO) positions itself for growth with its latest public offering, investors are eyeing the company's financial health and market performance. The latest data from InvestingPro reveals a mixed financial landscape for Soleno, with some key indicators worth noting.
The company's market capitalization stands at a solid $1.64 billion, reflecting investor confidence to some extent. However, the financial metrics show a challenging profitability scenario, with a negative P/E ratio of -20.58, which further dips to -44.87 when adjusted for the last twelve months as of Q4 2023. This suggests that the market has priced in the company's earnings challenges, acknowledging that Soleno is currently not generating profit.
Despite these profitability concerns, Soleno's stock has experienced a remarkable return of 1275.14% over the last year, indicating a strong market performance that could be attractive to investors looking for high-growth potential in their portfolios. This is complemented by a significant recent surge, with a one-week price total return of 29.93%.
For those considering a deeper dive into Soleno's financials and market prospects, InvestingPro offers additional insights. Currently, there are 12 more InvestingPro Tips available, which provide a comprehensive analysis of Soleno's financial health and market performance. These tips include information on cash holdings, expected net income growth, and the company's liquidity position, among others.
For instance, one of the InvestingPro Tips highlights that Soleno holds more cash than debt on its balance sheet, which is a positive sign for financial stability. Another tip points out that analysts predict the company will be profitable this year, offering a glimmer of hope for future earnings.
Investors interested in accessing these detailed insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This offer can provide valuable guidance for those looking to make informed investment decisions regarding Soleno Therapeutics.
The company's next earnings date is scheduled for May 14, 2024, which will be a critical moment for investors to assess Soleno's financial trajectory and the impact of its public offering on its drug development progress.
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