REGENXBIO Launches $100M Stock Offering, Diluting Existing Holders
RGNX has more than doubled off its 52-week low of $5.455.
Summary
REGENXBIO is tapping public markets for $100 million via a common stock offering, with underwriters granted a 15% overallotment option. The raise comes just two months after the company reported a $90.1 million Q1 loss and reiterated going concern doubts, despite positive Phase III Duchenne data and a $100 million AbbVie milestone payment in late June. The offering will dilute existing shareholders at a time when the stock is trading near $11, well below its May highs following the Duchenne readout. The shelf registration was already in place, but the timing suggests the company needs capital sooner than the AbbVie payment alone can provide. Final terms, including pricing, will be disclosed in a subsequent prospectus supplement.
At the time of this announcement, RGNX was trading at $11.01 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $579M. The 52-week trading range was $5.46 to $16.19. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: PR Newswire.