The stock of enGene Holdings Inc. (NASDAQ: ENGN) is rising on the US charts this morning. The price of enGene stock was up 77.30% during current session to $13.51 at the time of the last check. The increase in ENGN shares follows an equity transaction.
enGene (ENGN) stated today that it has reached an agreement to sell 20 million ordinary shares at a price of $10.00 per share, which is 31% above the closing price on February 13, 2024. On February 16, 2024, the financing is anticipated to conclude, subject to standard closing requirements. Including offering-related costs, enGene projects total revenues from the private placement to reach $200 million.
The proceeds of this financing will be used by enGene for working capital and general corporate purposes, as well as for the ongoing evaluation of expanded development opportunities for EG-70, potential new R&D programs, and the company’s genetic medicine therapeutic candidate, EG-70, which is the subject of an ongoing pivotal study for BCG-unresponsive NMIBC.
It is anticipated that the proceeds of this loan, along with the present cash and cash equivalents, will be adequate to support the current operational plan until 2027. Additionally, enGene said that Jason Hanson will step down as Chief Executive Officer and member of the Board of Directors following the selection of a replacement, citing personal, family, and health-related reasons.
The ENGN Board has started looking for his replacement. He will serve as a strategic advisor to the Company and the new CEO when the latter is hired. Jason will be leaving enGene in a strong position, having spearheaded the program’s development and discovery, EG-70, for which positive clinical results have been previously published and which is currently undergoing a pivotal study.
In addition, he oversaw the conversion of enGene into a publicly traded business and assembled a strong executive team. In order to guarantee a smooth transition and prepare enGene for its possible near-term transformation into a commercial-stage genetic pharmaceuticals firm, the Board is eager to collaborate with Jason to find the ideal replacement.
