As the US stock market continues to play out, Solid Biosciences Inc. (NASDAQ: SLDB) has seen a remarkable increase in the value of its shares during current activity. According to the most recent check, Solid Biosciences stock has risen by a significant 29.41%, closing at $7.70. This surge is underpinned by a strategic maneuver on the part of Solid Biosciences, marked by a consequential disclosure pertaining to equity.
Solid Biosciences (SLDB) has made a distinct mark by entering into a securities purchase agreement with a discerningly selected cohort of institutional accredited investors. This agreement encapsulates a substantial private placement, amounting to approximately $108.9 million.
This private placement is expected to close on January 11, 2024, or thereabouts, assuming the usual closing conditions are met. Notably, this private placement has been priced precisely to satisfy the strict “Minimum Price” criterion while also carefully adhering to Nasdaq standards.
Participation in the private placement spans both novel and existing investors, comprising an illustrious consortium including Adage Capital Partners LP, Invus, Janus Henderson Investors, Bain Capital Life Sciences, Perceptive Advisors, Deerfield Management Company, RA Capital Management, Vestal Point Capital, LP, and an undisclosed life sciences investor, among other stakeholders.
In the orchestration of this private placement, Citigroup and Cantor have assumed the roles of joint lead placement agents for SLDB. The private placement itself encompasses the sale of 16,973,103 shares of common stock by Solid Biosciences at an individual share price of $5.53. Concurrently, pre-funded warrants offering the right to acquire up to 2,712,478 shares of common stock are being proffered at a rate of $5.529 per pre-funded warrant, in lieu of common stock.
Each pre-funded warrant is endowed with an exercise price of $0.001 per share, immediate exercisability, and maintains exercisability until complete execution. The generated net proceeds from this private placement are allocated to bolstering ongoing pipeline development initiatives, facilitating business development endeavors, and attending to working capital and overarching corporate exigencies for SLDB.
