Tectonic Therapeutic, Inc. (NASDAQ: TECX) has announced a significant $185 million private placement financing. The private investment in public equity financing (PIPE) is expected to result in gross proceeds of approximately $185.0 million. As part of the agreement, Tectonic will issue an aggregate of 3,689,465 shares of common stock at a price of $50.00 per share to fund investors and $54.14 per share to individual investors who are either officers or directors of Tectonic.
The financing saw participation from both new and existing investors, including notable names such as Adage Capital Partners LP, Ally Bridge Group, Deep Track Capital, Ecor1 Capital, Farallon Capital Management, L.L.C., Soleus Capital, Stemline Capital LP, TAS Partners, Woodline Partners LP, a major mutual fund, a life-sciences focused institutional investor, and other investors.
Alise Reicin, M.D, Chief Executive Officer of Tectonic, expressed excitement about the financing, stating that the additional capital will further advance the company's discovery and development of therapeutic proteins and antibodies that modulate the activity of G-protein coupled receptors.
The company expects to use the net proceeds from the financing for various purposes, including funding the clinical development of TX45 and TX2100, discovery platform development, as well as for working capital and other general corporate purposes. The PIPE is expected to close on February 5, 2025, subject to customary closing conditions.
Tectonic emphasized that the offer and sale of the shares of common stock to be sold in the PIPE are being made in a transaction not involving a public offering, and the shares have not been registered under the Securities Act of 1933. However, Tectonic has agreed to register the resale of the shares of common stock to be issued in the PIPE with the Securities and Exchange Commission.
Tectonic, headquartered in Watertown, Massachusetts, is a biotechnology company focused on the discovery and development of therapeutic proteins and antibodies that modulate the activity of G-protein coupled receptors. Leveraging its proprietary technology platform called GEODE™ (GPCRs Engineered for Optimal Discovery), the company aims to develop biologic medicines that overcome the challenges of GPCR-targeted drug discovery and address areas of significant unmet medical need.
As a result of these announcements, the company's shares have moved 2.3% on the market, and are now trading at a price of $55.4. Check out the company's full 8-K submission here.
