Soleno Therapeutics Inc. (NASDAQ:SLNO), a medical device company, has entered into an agreement with Jefferies LLC to potentially sell up to $150 million of its common stock. The announcement was made today, with the new funding option aimed at bolstering the company's financial flexibility.
Under the terms of the Open Market Sale AgreementSM, dated today, Soleno Therapeutics may, from time to time, sell shares of its common stock through Jefferies, acting as a sales agent. The sales will be conducted as "at the market offerings," which means they will be sold on the NASDAQ at prevailing market prices.
Jefferies will be entitled to a commission of 3% of the gross proceeds from each sale. Additionally, Soleno has agreed to indemnify Jefferies against certain liabilities and to reimburse the sales agent for certain expenses related to the offering.
The company has clarified that there is no obligation to sell any shares and the agreement may be terminated by either Soleno Therapeutics or Jefferies as outlined in the terms. The sales will be made pursuant to a prospectus supplement, which forms a part of the company’s existing Registration Statement.
Soleno Therapeutics specializes in the development and commercialization of products for the medical device industry, particularly in the electromedical and electrotherapeutic apparatus sector. The potential infusion of capital is expected to support the company’s ongoing operations and strategic initiatives.
The legal opinion of Wilson Sonsini Goodrich & Rosati, Professional Corporation regarding the shares has been included in the filing. This move by Soleno Therapeutics is based on a press release statement and is not an offer to sell or a solicitation of an offer to buy any shares.
In other recent news, Soleno Therapeutics reported significant developments. The company awarded performance-based restricted stock units to its employees, including top executives, under the Amended and Restated 2014 Equity Incentive Plan. CEO Anish Bhatnagar received the largest award of 850,000 shares. These awards are expected to vest upon significant FDA regulatory milestones related to their drug, DCCR.
Moreover, Soleno Therapeutics has expanded its corporate footprint by securing a new office lease in Redwood (NYSE:RWT) City, California. The company also announced plans for a public offering of its common stock at $46 each, aiming to raise approximately $138 million, primarily to support the advancement of DCCR.
In terms of analyst coverage, Piper Sandler maintained its Overweight rating on Soleno Therapeutics, while Oppenheimer lowered its price target for Soleno but maintained an Outperform rating. Baird initiated coverage on Soleno Therapeutics with an Outperform rating and a stock price target of $72.00. These recent developments highlight Soleno Therapeutics' ongoing efforts to bring innovative treatments to patients with rare diseases.
InvestingPro Insights
As Soleno Therapeutics Inc. (NASDAQ:SLNO) explores financial avenues to enhance its market position, a glance at the company's real-time financial health through InvestingPro data reveals a mix of challenges and opportunities. With a market capitalization of $1.71 billion, the company's financial landscape is noteworthy. Despite a negative P/E ratio of -21.03, reflecting the company's current lack of profitability, analysts are forecasting a brighter horizon with net income expected to grow this year. This optimism is further bolstered by a remarkable 1-year price total return of 799.03%, showcasing significant investor confidence over the past twelve months.
InvestingPro Tips suggest that Soleno holds more cash than debt, providing it with a level of financial security that could be advantageous in its growth plans. Additionally, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position. For readers interested in a deeper analysis, there are 8 additional InvestingPro Tips available that could provide further insights into Soleno's financial strategies and market performance.
For those considering an investment in Soleno Therapeutics, it's worth noting that the company does not pay dividends, which could influence the investment strategy of income-focused portfolios. To explore these metrics in more detail and to access exclusive insights, readers can visit InvestingPro's dedicated page for Soleno Therapeutics. Moreover, to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, use the coupon code PRONEWS24.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.