1. Denali Therapeutics priced a public offering of 9.14 million shares at $17.50 each. 2. The offering aims to raise approximately $200 million in gross proceeds. 3. A 30-day option exists for underwriters to purchase an additional 1.71 million shares. 4. The offering, closing around December 11, includes pre-funded warrants at $17.49. 5. Denali is focused on innovative biotherapeutics for neurodegenerative diseases.
FAQ
Why Bullish?
Public offerings can strengthen liquidity, but may dilute existing shares. Historically, companies like DNLI benefit from raised capital for R&D, boosting long-term prospects.
How important is it?
The successful completion of the offering signifies confidence from underwriters, positively impacting investor sentiment and DNLI's financial stability.
Why Long Term?
The capital raised can fund future projects that may increase DNLI's market value, yielding benefits over time rather than immediate changes.
Denali Therapeutics (NASDAQ: DNLI) Prices Public Offering of Common Stock and Pre-Funded Warrants
SOUTH SAN FRANCISCO, Calif., (GLOBE NEWSWIRE) -- Denali Therapeutics Inc. (NASDAQ: DNLI) has announced the pricing of its underwritten public offering, which includes 9,142,857 shares of common stock priced at $17.50 per share. Additionally, the company is offering pre-funded warrants to purchase 2,285,714 shares of common stock at a price of $17.49 per warrant. This offering is a significant step for Denali as it seeks to bolster its capital for ongoing projects.
Details of the Offering
All shares and pre-funded warrants in this offering will be sold by Denali Therapeutics. Furthermore, the underwriters have been granted a 30-day option to purchase up to an additional 1,714,285 shares of common stock. Denali expects to receive total gross proceeds of approximately $200 million before the deduction of underwriting discounts and commissions, as well as other offering expenses.
Closing Expectations
The offering is expected to close on or about , pending the satisfaction of customary closing conditions. The investment banks facilitating the offering include Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Jefferies LLC, acting as the joint book-running managers, while H.C. Wainwright & Co., LLC and B. Riley Securities, Inc. will serve as co-managers.
Regulatory Filings and Documentation
Denali Therapeutics has filed a Registration Statement on Form S-3, which became effective upon filing with the SEC on . A preliminary prospectus supplement and accompanying prospectus related to this offering were filed on . Investors will be able to access these documents free of charge through the SEC’s website at www.sec.gov.
Important Contacts for Investors
When available, copies of the final prospectus supplement and accompanying prospectus can be requested from:
- Goldman Sachs & Co. LLC: Attention: Prospectus Department, 200 West Street, New York, NY 10282, Telephone: 1-866-471-2526
- J.P. Morgan Securities LLC: c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Email: prospectus-eq_fi@jpmchase.com
- Morgan Stanley & Co. LLC: Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, Telephone: 1-866-718-1649
- Jefferies LLC: Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, Telephone: (877) 821-7388
About Denali Therapeutics
Denali Therapeutics is a biotechnology company focused on developing biotherapeutics designed to cross the blood-brain barrier using its proprietary TransportVehicle™ platform. The company is dedicated to advancing treatments that could change the lives of patients suffering from neurodegenerative disorders, lysosomal storage diseases, and other serious conditions.
Forward-Looking Statements
This announcement contains forward-looking statements that involve risks and uncertainties that could affect the outcome of the offering and Denali’s financial position. There might be variations due to market conditions, regulatory approvals, and other factors that could change the anticipated outcomes. Interested parties can find additional information under the “Risk Factors” section of Denali's filings with the SEC, which are accessible on their website.
Investor and Media Contacts
For inquiries, please contact:
- Investor Relations: Laura Hansen, Ph.D., Vice President, Investor Relations, hansen@dnli.com
- Media Relations: Erin Patton, Corporate Communications, epatton@dnli.com