Fate Therapeutics, Inc. has announced the pricing of an underwritten offering of 14,545,454 shares of its common stock at an offering price of $5.50 per share. This offering is expected to generate gross proceeds of approximately $100.0 million before deducting underwriting discounts and commissions and other offering expenses.
In addition to the underwritten offering, the company also priced a concurrent private placement of pre-funded warrants to purchase 3,636,364 shares of its common stock at a purchase price of $5.499 per pre-funded warrant. This private placement represents the offering price per share of common stock less the $0.001 exercise price per share of each pre-funded warrant and is expected to contribute to the overall gross proceeds from the offering.
The company's net proceeds from the underwritten offering and concurrent private placement will be utilized for funding clinical trials and nonclinical studies of the company’s product candidates, manufacturing expenses associated with the development of the company’s product candidates, the conduct of preclinical research and development, and for other working capital and general corporate purposes.
The financing involving the underwritten offering and private placement is expected to close on or about March 21, 2024, subject to customary closing conditions. The offering has participation from new and existing institutional investors, including Adage Capital Partners LP, Boxer Capital, Deep Track Capital, OrbiMed, Suvretta Capital, and a life-sciences focused investor affiliated with Redmile Group, LLC.
Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company, is dedicated to bringing a first-in-class pipeline of induced pluripotent stem cell (iPSC)-derived cellular immunotherapies to patients with cancer and autoimmune disorders. The company's proprietary iPSC product platform has established a leadership position in creating multiplexed-engineered iPSC lines and in the manufacture and clinical development of off-the-shelf, iPSC-derived cell products, including natural killer (NK) cell and T-cell product candidates.
Today the company's shares have moved 0.1% to a price of $7.43. If you want to know more, read the company's complete 8-K report here.
