Axcella Announces Pricing of Public Offering of Common Stock
14 May 2020 - 12:31PM
Business Wire
Axcella (Nasdaq: AXLA), a clinical-stage biotechnology company
focused on leveraging endogenous metabolic modulators (EMMs) to
pioneer a new approach for treating complex diseases and improving
health, today announced the pricing of its underwritten public
offering of 11,000,000 shares of its common stock at a public
offering price of $4.75 per share, before deducting underwriting
discounts and commissions. In addition, Axcella has granted the
underwriters a 30-day option to purchase up to an additional
1,650,000 shares of common stock at the public offering price, less
the underwriting discounts and commissions. The gross proceeds of
the offering, before deducting underwriting discounts and
commissions and other estimated offering expenses payable by
Axcella, are expected to be approximately $52.3 million, excluding
any exercise of the underwriters’ option to purchase additional
shares. The offering is expected to close on May 18, 2020, subject
to the satisfaction of customary closing conditions.
Axcella intends to use the net proceeds from the offering,
together with its existing cash and cash equivalents, to advance
its current liver programs, including its planned IND filing for
AXA1665 and ensuing initiation of a Clinical Trial and its planned
IND filing for AXA1125 in adults and pediatric patients and ensuing
initiation of Clinical Trials; advance its product candidate
AXA4010, including the conclusion of its ongoing Clinical Study;
advance its development platform and discovery efforts; and support
organizational growth and for working capital and other general
corporate purposes. J.P. Morgan and SVB Leerink are acting as joint
book-running managers for the offering. Wedbush PacGrow is acting
as lead manager and Roth Capital Partners is acting as co-manager
for the offering.
A registration statement relating to these securities was filed
with the Securities and Exchange Commission ("SEC") on May 11, 2020
and was declared effective by the SEC on May 13, 2020. The offering
is being made only by means of a prospectus. Before you invest, you
should read the prospectus and the other documents the issuer has
filed with the SEC for more complete information about the issuer
and the risks associated with investing in the offering. These
documents have been filed with the SEC and may be obtained on the
SEC's website at http://www.sec.gov. You can also obtain the
prospectus, when available, by contacting J.P. Morgan Securities
LLC, Attention: Broadridge Financial Solutions, 1155 Long Island
Avenue, Edgewood, New York 11717, telephone: (866) 803-9204, or
email: prospectus-eq_fi@jpmchase.com; or SVB Leerink LLC,
Attention: Syndicate Department, One Federal Street, 37th Floor,
Boston, MA 02110, by telephone at (800) 808-7525, ext. 6218, or
email: syndicate@svbleerink.com.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy these securities, nor shall there
be any offer or sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such state or jurisdiction.
About Axcella
Axcella is a clinical-stage biotechnology company focused on
leveraging endogenous metabolic modulators (EMMs) to pioneer a new
approach for treating complex diseases and improving health. The
company’s product candidates are comprised of EMMs and their
derivatives that are engineered in distinct combinations and ratios
to simultaneously impact multiple biological pathways. Axcella’s
pipeline includes lead therapeutic candidates for non-alcoholic
steatohepatitis (NASH) and the reduction in risk of overt hepatic
encephalopathy (OHE) recurrence. Additional muscle- and
blood-related programs are in earlier-stage development.
Forward Looking Statements
Statements contained in this press release regarding matters
that are not historical facts are “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995, as amended. Because such statements are subject to risks
and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Such
statements include, but are not limited to, statements regarding
the expected gross proceeds, closing and use of proceeds of the
offering. Risks that contribute to the uncertain nature of the
forward-looking statements include, without limitation, market
risks and uncertainties and the satisfaction of customary closing
conditions related to the offering; the success, cost, and timing
of the company’s product candidate development activities and
planned clinical studies and clinical trials; the company’s ability
to execute on its strategy; positive results from a clinical study
may not necessarily be predictive of the results of future or
ongoing clinical studies or clinical trials; regulatory
developments in the United States and foreign countries; the
company’s estimates regarding expenses, future revenue, and capital
requirements, and other financial results; as well as those risks
and uncertainties set forth in the company’s most recent Quarterly
Report on Form 10-Q and subsequent filings with the Securities and
Exchange Commission. The company cautions you not to place undue
reliance on any forward-looking statements, which speak only as of
the date they are made. Axcella disclaims any obligation to
publicly update or revise any such statements to reflect any change
in expectations or in events, conditions or circumstances on which
any such statements may be based, or that may affect the likelihood
that actual results will differ from those set forth in the
forward-looking statements. Any forward-looking statements
contained in this press release represent the company’s views only
as of the date hereof and should not be relied upon as representing
its views as of any subsequent date. The company explicitly
disclaims any obligation to update any forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20200513005926/en/
Company/Investor Contact Jason Fredette
jfredette@axcellahealth.com 857.320.2236 Media Contact Azeem
Zeekrya HDMZ azeem.zeekrya@hdmz.com 312-506-5244
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