NEW HAVEN, Conn. - BioXcel Therapeutics, Inc. (NASDAQ:BTAI), a biopharmaceutical firm leveraging artificial intelligence to develop medicines, announced on Thursday the launch of a $60 million underwritten public offering of its common stock. The company also plans to offer pre-funded warrants as an alternative to certain investors. Alongside the offering, underwriters will have a 30-day option to buy up to an additional $9 million in shares at the public offering price, less underwriting discounts and commissions.
BofA Securities and Truist Securities are serving as the joint book-running managers for the offering. However, the completion and terms of the offering are subject to market conditions, and there is no certainty as to when or if the offering will be finalized.
BioXcel intends to use the net proceeds from this offering to support ongoing and planned clinical trials, commercialization efforts, and general corporate functions. The offering is made under a shelf registration statement filed with the Securities and Exchange Commission (SEC) on November 2, 2023, and effective from November 13, 2023.
Details regarding the offering terms will be available in a preliminary prospectus supplement filed with the SEC and can be accessed on the SEC's website. The final terms will be disclosed in a final prospectus supplement filed with the SEC.
This announcement does not serve as an offer to sell or a solicitation of an offer to buy securities, and there will be no sale of these securities in any jurisdiction where such an offer, solicitation, or sale would be illegal prior to registration or qualification under the securities laws of that jurisdiction.
The company's press release includes forward-looking statements, which are not guarantees of future performance and are subject to risks and uncertainties. Investors are cautioned that actual results may differ materially from those projected due to various factors, including those detailed in the company's filings with the SEC.
InvestingPro Insights
As BioXcel Therapeutics, Inc. gears up for its $60 million public stock offering, investors are keeping a keen eye on the company's financial health and market performance. According to InvestingPro data, BioXcel Therapeutics currently holds a market capitalization of $112.24 million. Despite a challenging period, the company has reported an impressive revenue growth of 806.57% over the last twelve months as of Q3 2023, highlighting its potential for scaling operations. However, the company's operating income margin for the same period stands at a staggering negative 16154.43%, reflecting significant operational costs in relation to its revenue.
Recent price movements present a mixed picture for BioXcel. The company has seen a strong return over the last week, with a 22.55% price total return, and an even more robust return over the last month at 35.38%. These figures contrast with the 88.41% decline in price total return over the past year, illustrating the stock's volatility and the high-risk nature of investing in the biopharmaceutical sector. Investors considering this offering may also note that BioXcel's stock is currently trading at only 10.99% of its 52-week high, potentially indicating a discounted entry point for those with confidence in the company's long-term strategy.
Turning to InvestingPro Tips, one noteworthy point is that analysts do not anticipate the company will be profitable this year, which aligns with the challenging operating income margin data. Additionally, BioXcel is quickly burning through cash, a critical factor for investors to consider given the company's need for capital to fund its clinical trials and commercialization efforts. For those seeking a deeper dive into the company's prospects, there are 13 additional InvestingPro Tips available at: https://www.investing.com/pro/BTAI. Interested investors may utilize coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.
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