CAMBRIDGE, Mass. - Foghorn Therapeutics Inc. (NASDAQ:FHTX), a biopharmaceutical company, announced today its plans for a registered direct offering of shares and pre-funded warrants expected to raise approximately $110 million.
The company is offering 12,743,039 shares of common stock at $5.51 each and pre-funded warrants to purchase up to 7,220,794 shares at $5.5099 per warrant. The offering, set to close around May 22, 2024, subject to customary closing conditions, will be managed by Jefferies, TD Cowen, and Evercore ISI as joint book-running managers.
Foghorn anticipates that the gross proceeds from the offering, before underwriting discounts, commissions, and estimated offering expenses, will be used to advance its preclinical and clinical programs and for general corporate purposes. The securities are being offered pursuant to a shelf registration statement on Form S-3, declared effective by the SEC on March 14, 2022.
The company focuses on developing a novel class of medicines targeting the chromatin regulatory system through its Gene Traffic Control® platform. Foghorn is actively developing multiple oncology product candidates.
This press release, which announces the pricing and details of the offering, does not constitute an offer to sell or a solicitation of an offer to buy the securities. The offering will only be made by means of a final prospectus supplement and accompanying prospectus, which will be filed with the SEC and available on its website.
The information contained in this news article is based on a press release statement from Foghorn Therapeutics Inc. and does not imply any endorsement of the company's claims or future prospects.
InvestingPro Insights
As Foghorn Therapeutics Inc. (NASDAQ:FHTX) prepares for its significant funding round, potential investors may be weighing the company's financial health and market performance. According to InvestingPro data, Foghorn Therapeutics holds a market capitalization of $234.65 million, with a notably high revenue growth of 64.41% over the last twelve months as of Q1 2024.
Despite this impressive growth, the company's gross profit margin stands at -210.47%, indicating challenges in converting sales into actual profit. Additionally, the stock has experienced a large price uptick of 34.06% over the last six months, which may attract investors looking for growth in share value.
Investors considering participating in Foghorn Therapeutics' offering might find the InvestingPro Tips particularly informative. The company is recognized for holding more cash than debt on its balance sheet, which is a positive sign of financial stability. Still, it is also quickly burning through cash, which could be a concern for long-term sustainability.
Analysts do not anticipate the company will be profitable this year, and they expect a sales decline in the current year. These insights, among others available on InvestingPro, can provide a deeper analysis for those looking to make an informed decision. For more detailed tips and metrics, visit InvestingPro and find out how many additional tips are listed for Foghorn Therapeutics.
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