Denali Therapeutics surges 30% after $500 mln PIPE financing

Denali Therapeutics

27/02/2024 18:46

** Denali Therapeutics Inc's  DNLI.O  shares surge as much
as 31% to $22.13, highest level this year, on Tues after co
raises equity in private placement
    ** Stock on course for biggest one-day pct gain since Aug
2020
    ** DNLI says to sell ~29.7 mln shares, including ~26 mln
pre-funded warrants, at $17.07 in a PIPE (private investment in
public equity) for $500 mln in proceeds
    ** Financing led by a U.S.-based healthcare-focused
investor, with participation from global asset managers based in
Boston and on the West Coast, co says
    ** DNLI says intends to use funds to support ongoing R&D,
acceleration/expansion of its proprietary BBB-crossing Transport
Vehicle (TV) technology
    ** Also Tues, co posted Q4 adj loss of 86 cents/sh vs LSEG
consensus estimate of 80 cents/sh loss
    ** Co says it had approx $1 bln of cash at end-Dec, adding
it expects PIPE proceeds to extend its cash runway into 2028
    ** DNLI's stock on Feb 16 fell ~7% to close at $17.02 after
its ALS (amyotrophic lateral sclerosis) drug being developed
with partner Sanofi  SASY.PA  failed to meet mid-stage trial
goal
    ** With move on the session, stock cuts loss over the past
12 months to about 20%

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))