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Praxis Precision Medicines, Inc. Announces Proposed Public Offering

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BOSTON, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Praxis Precision Medicines, Inc. (NASDAQ: PRAX), a clinica...

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Corporate Developments

The proposed offering raises capital but also introduces dilution risk, directly impacting investor sentiment.

FAQ

Why Bearish?

Public offerings typically dilute existing shares, which can negatively affect stock prices. Recent historical data shows similar offerings led to short-term downturns in share prices for other biotech companies.

How important is it?

The proposed offering raises capital but also introduces dilution risk, directly impacting investor sentiment.

Why Short Term?

Market typically reacts negatively in the short-term to dilution events. Biotech companies often rebound once offerings are completed and funds utilized effectively.

Related Companies

Praxis Precision Medicines, Inc. Announces Proposed Public Offering

BOSTON, Jan. 06, 2026 (GLOBE NEWSWIRE) -- Praxis Precision Medicines, Inc. (NASDAQ: PRAX), a clinical-stage biopharmaceutical company focused on developing therapies for central nervous system (CNS) disorders, has announced a proposed public offering of its common stock. The offering includes pre-funded warrants to purchase shares of common stock for certain investors, showcasing the company's proactive approach to funding its innovative research.

Offering Details

All securities will be offered by Praxis in this proposed public offering. The company intends to grant underwriters a 30-day option to purchase up to 15% of the shares sold in the offering—either common stock or pre-funded warrants—at the public offering price, less the underwriting discount and commission.

Underwriters and Management Team

A reputable group of financial institutions will manage the offering:

  • Piper Sandler
  • TD Cowen
  • Guggenheim Securities
  • Truist Securities

Additionally, LifeSci Capital, Baird, and Oppenheimer & Co. will act as lead managers, while H.C. Wainwright & Co. and Needham & Company will serve as co-managers.

Regulatory Compliance and Conditions

The proposed offering is being conducted pursuant to a shelf registration statement on Form S-3ASR. This registration, including a base prospectus, was filed with the Securities and Exchange Commission (SEC) and became effective automatically on December 23, 2024. The offering will only proceed under a preliminary prospectus supplement, which will be made available to potential investors.

How to Obtain the Preliminary Prospectus

Investors interested in the preliminary prospectus for this offering can request it from one of the following:

The final terms of the offering will be disclosed in a subsequent prospectus supplement filed with the SEC.

Legal Disclaimer

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction where such an offer would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Forward-Looking Statements

This announcement contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements encompass Praxis' future expectations and plans, including the timing and completion of the proposed public offering. The words “anticipate,” “believe,” “estimate,” and similar expressions identify forward-looking statements.

Investors are cautioned not to place undue reliance on these forward-looking statements, which are subject to various risks and uncertainties related to market conditions, as well as other factors outlined in Praxis' Annual and Quarterly Reports filed with the SEC.

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