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Foghorn Therapeutics Announces Closing of $50 Million Registered Direct Financing at a 30% Premium

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WATERTOWN, Mass., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Foghorn® Therapeutics Inc. (Nasdaq: FHTX), a cli...

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AI Summary

Foghorn Therapeutics (FHTX) successfully closed a $50 million direct financing at a 30% premium, signaling strong investor confidence. This financial boost, led by notable backers, enhances their working capital significantly and supports ongoing oncology product development.

Sentiment Rationale

The successful financing at a premium may lead to increased investor confidence, similar to past biotech raises that resulted in short-term stock price appreciation.

Trading Thesis

Consider buying FHTX shares for potential short-term upside following financing success.

Market-Moving

  • Financing at a 30% premium indicates strong market confidence in FHTX.
  • Major investors involved could encourage broader institutional interest.
  • Additional warrants could lead to future share dilution if exercised.
  • The $50 million proceeds could accelerate product development timelines.

Key Facts

  • FHTX closed $50 million registered direct financing at a 30% premium.
  • 2,030,314 shares sold at $6.71 per share, above market price.
  • Investors received pre-funded warrants for additional share purchases.
  • The financing included major funds like BVF Partners and Deerfield Management.
  • Gross proceeds estimated at $50 million, enhancing FHTX's cash position.

Companies Mentioned

  • BVF Partners (N/A): Major investor participating in the financing.
  • Deerfield Management (N/A): Key financial backer, showing confidence in FHTX.
  • Flagship Pioneering (N/A): Founding investor reinforcing commitment to FHTX.

Corporate Developments

This funding event fits into 'Corporate Developments', reflecting FHTX's strategy to strengthen its financial position and support its innovative drug pipeline. The involvement of high-profile investors underscores the potential market optimism surrounding the firm.

Foghorn Therapeutics (FHTX) Closes $50 Million Registered Direct Financing

WATERTOWN, Mass., January 13, 2026 (GLOBE NEWSWIRE) — Foghorn® Therapeutics Inc. (Nasdaq: FHTX), a clinical-stage biotechnology company specializing in novel therapies that target gene expression to treat serious diseases, has successfully closed a $50 million registered direct financing. This strategic move comes with a noteworthy 30% premium over the market price, indicating strong investor interest and confidence in the company’s innovative approach to drug development.

Details of the Registered Direct Financing

The registered direct offering consisted of the sale of 2,030,314 shares of common stock priced at $6.71 per share. Additionally, certain investors were issued pre-funded warrants enabling them to purchase up to 5,421,250 shares at an effective price of $6.7099 each, reflecting the initial share price minus a nominal exercise cost of $0.0001 per share.

Moreover, the offering included series warrants allowing for the purchase of up to:

  • 3,725,782 shares at $13.42 per share (2x issue price)
  • 3,725,782 shares at $20.13 per share (3x issue price)

This financing initiative, successfully managed without an underwriter or placement agent, highlights significant backing from existing shareholders, including BVF Partners, Deerfield Management, Flagship Pioneering, and a leading biotech mutual fund.

Financial Impact and Future Prospects

The gross proceeds from this financing amount to approximately $50 million, excluding potential earnings from the exercise of the series warrants. The $6.71 purchase price of the shares points to a robust market response, being a 30% premium over the Nasdaq Global Market price as of January 9, 2026. This development not only strengthens Foghorn's financial position but also enhances its capability to further its research and development efforts.

Compliance and Regulatory Information

The securities issued in this offering were conducted pursuant to a shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (SEC) on January 31, 2025. It is important to note that this announcement does not serve as an offer to sell or a solicitation to buy the securities mentioned herein. Such offers will comply with all necessary regulatory stipulations.

A prospectus supplement related to this offering has been filed and can be accessed via the SEC's official website at www.sec.gov.

About Foghorn Therapeutics

Foghorn Therapeutics is at the forefront of medicinal innovation, developing a new class of therapies targeting genetically determined dependencies within the chromatin regulatory system. Utilizing its proprietary Gene Traffic Control® platform, Foghorn is actively studying and validating potential drug targets, with a strong pipeline of candidates focused primarily on oncology.

For further information about Foghorn Therapeutics and its cutting-edge research, visit www.foghorntx.com or follow the company on X and LinkedIn.

Contact Information

For media inquiries, please contact:

Karin Hellsvik, Foghorn Therapeutics Inc.
Email: khellsvik@foghorntx.com

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