SOUTH SAN FRANCISCO - Denali Therapeutics Inc. (NASDAQ: NASDAQ:DNLI), a biopharmaceutical company focused on neurodegenerative and lysosomal storage diseases, has secured approximately $500 million through a private investment in public equity (PIPE) deal.
The transaction involves the sale of 3,244,689 common shares at $17.07 each and pre-funded warrants for 26,046,065 shares at $17.06 per warrant, with an exercise price of $0.01 per common share.
The company expects the deal to close on February 29, 2024, subject to standard closing conditions. The funds are earmarked for research and development, particularly the advancement of Denali's proprietary Transport Vehicle (TV) technology, which is designed to deliver therapeutics across the blood-brain barrier.
The financing round was led by a U.S.-based healthcare investor, with additional participation from global asset managers in Boston and the West Coast.
Denali's CEO, Ryan Watts, Ph.D., expressed enthusiasm for the partnership with shareholders, which is intended to accelerate the company's portfolio expansion. Post-financing, Denali anticipates its cash, cash equivalents, and investments will total around $1.5 billion, though this figure is a preliminary estimate and subject to change.
The securities sold in the PIPE have not been registered under the Securities Act of 1933 and are subject to restrictions on resale. Denali has committed to filing a registration statement with the SEC within 30 days post-closing for the resale of the common stock issued in the PIPE and the shares issuable upon exercise of the pre-funded warrants.
Denali Therapeutics, headquartered in South San Francisco, is dedicated to developing treatments that can cross the blood-brain barrier to address genetically validated targets for neurodegenerative diseases. The company's approach includes rigorous target assessment, blood-brain barrier delivery engineering, and biomarker-guided development.
This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties.
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