ProKidney rebounds after upsized $130 mln equity raise

Prokidney

12/06/2024 14:12

(Updates stock activity, adds context of broader markets)
    ** ProKidney's  PROK.O  shares rally 7.4% to $2.60 premarket
after cell therapy developer raises more equity than targeted
    ** Co late Tues announced pricing of ~53.7 mln shares in
public and concurrent registered direct offering at $2.42 for
$130 mln gross proceeds
    ** PROK shares on Tues tumbled ~20% to close at $2.42 after
co launched $125 mln offerings
    ** Board chairman and controlling shareholder, Pablo
Legorreta, indicated to buy up to $100 mln of the offerings
through Tolerantia investment vehicle, per the SEC prospectus
filing
    ** Co plans to use net offering proceeds for clinical trial
costs, R&D expenses, continued investment in drug development
platform, pre-commercial and commercial activities
    ** Before the bell Mon, co said its drug, rilparencel, in
mid-stage study showed stabilization in kidney function for 18
months in chronic kidney disease patients
    ** ProKidney has ~231.7 mln shares outstanding for ~$561 mln
market cap, and ~59.6 mln shares of free float, per LSEG
    ** Shares up 36% YTD through Tues
    ** Jefferies, JP Morgan and Guggenheim are joint bookrunners
for the public offering
    ** Meanwhile, equity futures jump after inflation data
showed price increases cooled more than expected  .N 

 (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))