MONTREAL and CHARLOTTE, N.C. - Milestone Pharmaceuticals Inc . (NASDAQ:MIST), a biopharmaceutical company, has announced the pricing of its public offering of common shares and pre-funded warrants. The company has priced 16,666,667 common shares at $1.50 each and, alternatively, pre-funded warrants to purchase 3,333,333 common shares at $1.49 per warrant. The total expected proceeds before expenses are approximately $30 million.
The offering also includes an underwriter's option to purchase up to an additional 3,000,000 common shares at the public offering price, less the underwriting commissions. This option is available for 30 days. The closing of the offering is anticipated on or about March 4, 2024, subject to customary closing conditions.
Milestone intends to utilize the net proceeds to advance the development of etripamil, its lead drug candidate for the treatment of paroxysmal supraventricular tachycardia (PSVT) and for a subsequent indication for atrial fibrillation with rapid ventricular rate (AFib-RVR). Remaining funds will support working capital and other general corporate purposes.
Piper Sandler & Co. is the sole bookrunning manager for the offering, with H.C. Wainwright & Co. serving as the lead manager. The securities are offered pursuant to an effective shelf registration statement on Form S-3 and accompanying prospectus filed with the U.S. Securities and Exchange Commission (SEC). Interested parties can obtain copies of the final prospectus supplement and the accompanying prospectus from Piper Sandler & Co. when available.
This news follows Milestone's recent submission of a New Drug Application (NDA) to the FDA for etripamil for the treatment of PSVT. The company's press release contains forward-looking statements regarding the offering's timing and the anticipated use of proceeds, among other aspects.
Investors are cautioned that actual results may differ due to various risks and uncertainties, including the outcomes of future FDA interactions and the regulatory approval process. Milestone's filings with the SEC provide further details on these risks.
The information reported is based on a press release statement by Milestone Pharmaceuticals Inc.
InvestingPro Insights
Milestone Pharmaceuticals Inc. (NASDAQ:MIST) has announced a significant public offering, aiming to bolster its financial position and fund the development of its promising drug candidate, etripamil. As investors evaluate this opportunity, it's essential to consider the company's financial health and market performance. According to InvestingPro data, Milestone holds a market capitalization of $91.72 million and has demonstrated a considerable revenue growth of 200% in the last twelve months as of Q3 2023. Despite this growth, the company's operating income margin stands at a concerning -1356.82% for the same period.
InvestingPro Tips highlight that Milestone is navigating through financial complexities with contrasting indicators. On one hand, the company holds more cash than debt, suggesting a stable liquidity position. On the other hand, analysts are wary, predicting a sales decline in the current year and not anticipating profitability for the year either. Moreover, while the stock has seen a strong return over the last month with a 33.12% increase, it has experienced a -32.59% return over the past year, highlighting the stock's volatility.
Investors considering participating in the public offering may find these insights valuable. For those looking for more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/MIST. Plus, with the promo code PRONEWS24, readers can receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to even more in-depth financial data and expert insights.
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