Precision BioSciences plunges on highly dilutive stock offering

Precision Biosciences

01/03/2024 15:58

** Shares of gene editing firm Precision BioSciences
 DTIL.O  plunges 31.2% at $12.73 on Fri after co raises equity
in highly dilutive follow-on offering
    ** Co early Fri announced 2.5 mln shares, along with
warrants to purchase up to additional 2.5 mln shares, at $16 for
$40 mln gross raise to fund ongoing R&D, working capital
    ** 5-yr warrants have exercise price of $20 and exerciseable
immediately
    ** Co has ~4.1 mln shares outstanding and 3.3 mln shares of
public float, LSEG data shows, inclusive of 1-for-30 reverse
stock split effected on Feb 13
    ** Offering price represents 13.5% discount to stock's last
close. DTIL had surged 39% this week prior to offering launch
after the bell Thurs
    ** On Feb 14, co said FDA supported design for its hepatitis
B therapy study
    ** With move on Fri, DTIL up 17% YTD after 69% decline in
2023
    ** Guggenheim sole bookrunner for stock 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))