Prelude Therapeutics Entered Into A Securities Purchase Agreement With Institutional Investors, To Which The Company Agreed To Issue And Sell Pre-Funded Warrants To Purchase Up To 7,936,759 Shares Of Voting Common Stock At A Price Of $3.1499 Per Warrant
Portfolio Pulse from Benzinga Newsdesk
Prelude Therapeutics has agreed to sell pre-funded warrants to institutional investors, allowing the purchase of up to 7,936,759 shares of common stock at $3.1499 per warrant. The warrants are immediately exercisable at $0.0001 per share and will not expire. The exercise of warrants is limited to prevent ownership exceeding 4.99% of outstanding shares, unless a higher percentage is set by the holder. The net proceeds of approximately $24.9 million will fund the SMARCA2 portfolio, working capital, and general corporate purposes. The offering is expected to close on December 13, 2023.
December 11, 2023 | 2:24 pm
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Prelude Therapeutics is issuing pre-funded warrants to raise $24.9 million for its SMARCA2 portfolio and other corporate purposes, with the offering closing on December 13, 2023.
The issuance of pre-funded warrants often leads to potential dilution of existing shares, which can negatively impact the stock price in the short term. However, the capital raised could benefit the company's long-term growth. The relevance is high as the news is directly about PRLD, and the importance is significant due to the potential dilution and the use of proceeds for corporate growth. The confidence level is high as the information is clear and the impact of such financial actions is typically well-understood in the market.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100