Gritstone bio dives on stock-and-warrants offering

Gritstone bio

02/04/2024 12:15

** Gritstone bio's  GRTS.O  shares down 38.3% at $1.45
premarket after follow-on offering priced
    ** Vaccine developer late Mon announced 21.6 mln shares,
including 13.3 mln pre-funded warrants, for $32.5 mln gross
proceeds
    ** Offering price of $1.50 represents ~36% discount to
stock's last sale
    ** Accompanying warrants to buy up to additional 21.6 mln
shares expire in one year, are exercisable immediately with
exercise price of $1.65
    ** Gritstone has ~98 mln shares outstanding for ~$230 mln
market cap
    ** Co late Mon also announced positive preliminary data from
mid-stage study for its vaccine to treat colorectal cancer
    ** GRTS shares have risen 15% YTD through Mon following ~41%
drop in 2023
    ** TD Cowen and Evercore are jt bookrunners for the offering

 (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))