Adverum Biotechnologies, Inc. announced that it has agreed to sell approximately 106.25 million shares of its common stock (or pre-funded warrants in lieu thereof) to a select group of institutional and accredited healthcare specialist investors in a private placement, at a price per share of $1.20, representing a premium of approximately 20% to Adverum’s 30-day volume-weighted average price.
The financing is expected to close on February 8, 2024, subject to customary closing conditions. Adverum anticipates the gross proceeds from the private placement to be approximately $127.5 million, before deducting any offering related expenses.
The financing was led by TCGX with participation from new and existing investors including 5AM Ventures, Commodore Capital, Frazier Life Sciences, Logos Capital, Samsara BioCapital, Venrock Healthcare Capital Partners and Vivo Capital, as well as two large investment management firms.
In lieu of shares of common stock, certain investors are purchasing pre-funded warrants at a purchase price of $1.1999 per share, which equals the purchase price per share of common stock, less the $0.0001 per share exercise price of each pre-funded warrant.
The proceeds from this financing, combined with current cash, cash equivalents and marketable securities, are expected to be sufficient to fund the current operating plan into late 2025.
TD Cowen and Truist Securities acted as placement agents on the offering.
The securities described above have not been registered under the Securities Act of 1933, as amended. Accordingly, these securities may not be offered or sold in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act.
Adverum has agreed to file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) registering the resale of the shares of common stock issued in this private placement. Any offering of the securities under the resale registration statement will only be made by means of a prospectus.