Arcellx drops on double-upsized stock deal

Arcellx

16/06/2022 12:38

** Arcellx Inc  ACLX.O  shares down 9.6% at $15.80 premarket
after biotech firm prices follow-on
    ** Co late Weds announced 7 mln shares at $16 for $112 mln
gross raise  urn:newsml:reuters.com:*:nPnbrv4J9a
    ** Offering prices at 8.4% discount to stock's last sale
    ** Shares dropped ~20% over past 2 sessions; Co early Tues
launched 4 mln share offering, and midday Weds boosted deal size
to 5 mln shares
    ** Co to use net offering proceeds to fund lead CAR-T drug
candidate to treat multiple myeloma (bone marrow cancer), other
drugs in pipeline
    ** BofA and SVB Secs, William Blair and Canaccord jt
bookrunners for offering
    ** Co in Feb raised ~$142 mln, including full overallotment
option, in IPO priced at $15  urn:newsml:reuters.com:*:nL1N2UF1MY  urn:newsml:reuters.com:*:nGNX7h2Zj0
    ** Shares hit peak of $26.91 last Fri
    ** Earlier this month, co presented Phase I trial results at
annual ASCO meeting for its lead drug, which showed all 31
patients treated responded positively since receiving treatment
12 months ago, with 12 of them going into remission  urn:newsml:reuters.com:*:nFWN2XQ0FX
 urn:newsml:reuters.com:*:nPnbFdNTpa

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))