DURHAM, N.C. - Humacyte, Inc. (NASDAQ:HUMA), a biotech company specializing in bioengineered human tissues, has entered into a securities purchase agreement with an institutional investor for a registered direct offering. The agreement involves the sale of roughly $30 million of its common stock and warrants. The transaction includes 5,681,820 shares and an equal number of warrants, with half exercisable immediately at $5.28 per share, expiring in six months, and the other half in four and a half years.
The offering, priced at $5.28 for each share and accompanying warrant, is estimated to generate gross proceeds of about $30 million, before deducting fees and other expenses. The closing is anticipated around October 7, 2024, pending customary conditions. EF Hutton LLC is the exclusive placement agent for the offering.
This financial move follows the company's effective shelf registration statement filed with the SEC on September 9, 2022. The offering is made through a prospectus supplement and accompanying prospectus available on the SEC's website.
Humacyte is advancing a platform that produces universally implantable bioengineered human tissues and organ systems, with potential applications across a range of medical conditions. Their products are in late-stage clinical trials for various vascular uses, and the company has received Priority Review from the FDA for a Biologics License Application. Additionally, their ATEV product candidate for hemodialysis AV access has obtained both RMAT and Fast Track designations from the FDA.
The company cautions that this press release contains forward-looking statements subject to risks, uncertainties, and other factors that could affect actual outcomes. These statements should not be considered guarantees of future performance or plans. This article is based on a press release statement from Humacyte, Inc.
In other recent news, Humacyte reported a net loss of $56.7 million for the second quarter of 2024, despite significant progress in its product pipeline. The company has been granted a U.S. Patent for its BioVascular Pancreas (BVP), a device aimed at treating type 1 diabetes. Meanwhile, Humacyte's Acute Tissue Engineered Vascular (ATEV) product has shown positive results from Phase 3 trials, but the FDA has postponed its review for vascular trauma.
Investment firms TD Cowen, EF Hutton, and Benchmark have all maintained a Buy rating on Humacyte. TD Cowen reconfirmed its Buy rating with a $10 price target, EF Hutton initiated coverage with a $25 price target, and Benchmark reiterated its Buy rating with a $15 price target. These positive outlooks are based on the company's innovative approach to medical treatments and its potential for growth.
Humacyte has also reported positive long-term results from a humanitarian program using its ATEV to treat severe vascular injuries in a military setting. These results have been included in the company's submission to the FDA, further bolstering the case for the impact of their product on the medical field. These developments are part of the recent news that may be of interest to investors in Humacyte.
InvestingPro Insights
Humacyte's recent $30 million registered direct offering comes at a time when the company's financial position presents a mixed picture. According to InvestingPro data, Humacyte has a market capitalization of $630.17 million, reflecting investor interest in its bioengineered human tissue technology.
Despite the company's innovative approach and late-stage clinical trials, InvestingPro Tips highlight some financial challenges. Humacyte is not currently profitable, with a negative P/E ratio of -5.52 over the last twelve months as of Q2 2024. This aligns with the InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
However, it's worth noting that Humacyte holds more cash than debt on its balance sheet, which could provide some financial flexibility as it progresses through clinical trials and regulatory processes. This strong cash position may have contributed to the company's ability to secure the recent $30 million offering.
Interestingly, despite these financial headwinds, Humacyte has seen a significant price uptick over the last six months, with a 69.23% price total return. This suggests that investors are optimistic about the company's long-term potential, possibly due to its advanced-stage product pipeline and FDA designations.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for Humacyte, providing a deeper understanding of the company's financial health and market position.
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