Tyra Biosciences, Inc., a pharmaceutical company, announced today an agreement with investment entities Boxer Capital, LLC and RA Capital Healthcare Fund, L.P. to exchange existing shares for warrants. Under the agreement, Boxer Capital will exchange two million shares of Tyra Biosciences’ common stock for an equal number of pre-funded warrants, while RA Capital will exchange one million shares for warrants.
These warrants will allow the holders to purchase shares of the common stock at a nominal price of $0.001 per share and are exercisable immediately. They do not have an expiration date. However, the agreement includes a beneficial ownership limitation, where the holders cannot exercise the warrants if such action would result in them owning more than 9.99% or 19.99% of the outstanding common stock, depending on their preference.
The number of shares issuable upon exercise of the warrants is subject to adjustment in the case of stock splits, dividends, and similar events. Additionally, in certain fundamental transactions, warrant holders have the right to receive assets or securities that they would have been entitled to if they had exercised their warrants before the transaction.
In other recent news, Tyra Biosciences has seen significant developments. BofA Securities upgraded Tyra Biosciences shares from Neutral to Buy, raising the price target to $31. This upgrade is based on the anticipation of clinical data from the SURF-301 study, showcasing Tyra Biosciences' FGFR3-inhibitor TYRA-300, a potential treatment for urothelial carcinoma and other solid tumors. Analyst firms Piper Sandler, H.C. Wainwright, and Oppenheimer have also shown confidence in Tyra Biosciences' potential, with price targets set at $33 and $30 respectively.
In addition, Tyra Biosciences is set to present research findings at the upcoming ENA 2024 symposium, including preliminary safety and anti-tumor activity of TYRA-300. The company's revenue is projected to grow to approximately $2.5 billion by 2035, according to Piper Sandler's estimates. Tyra Biosciences' TYRA-300 drug is expected to advance to Phase 2 clinical study for achondroplasia and non-muscle invasive bladder cancer by the end of 2024 and the first half of 2025, respectively.
Lastly, Tyra Biosciences has seen significant developments with the appointment of Doug Warner as its new Chief Medical Officer and the addition of Susan Moran, M.D., M.S.C.E., and S. Michael Rothenberg, M.D., Ph.D., to its board as independent directors.
InvestingPro Insights
Tyra Biosciences' recent warrant exchange agreement with Boxer Capital and RA Capital Healthcare Fund comes amid a period of significant stock performance for the company. According to InvestingPro data, TYRA has seen a strong 77.22% price total return over the past six months and is currently trading near its 52-week high, with the price at 98% of its peak.
Despite these positive stock movements, InvestingPro Tips highlight that Tyra Biosciences is not currently profitable and analysts do not anticipate profitability this year. This context may shed light on the company's decision to engage in this warrant exchange, potentially as a means to maintain investor interest while working towards profitability.
On a positive note, InvestingPro Tips indicate that Tyra holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. These factors could provide the company with financial flexibility as it continues its pharmaceutical development efforts.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for TYRA, providing a deeper understanding of the company's financial position and market performance.
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