Precision BioSciences Prices $125 Million Offering At $7.75 A Share, Funding Two Gene-Editing Programs
The gene-editing company sold common stock and pre-funded warrants, with all of it coming from the company, at a 4.6% discount to the prior sale price.
Precision BioSciences, a clinical-stage gene editing company, priced an underwritten offering of common stock and pre-funded warrants worth $125 million in gross proceeds, according to a prospectus supplement dated Thursday. The company itself is the seller, and it expects net proceeds of about $116.5 million.
Shares, warrants and the price
The deal covers 10,235,077 common shares at $7.75 each, plus pre-funded warrants to buy up to 5,893,964 more shares at $7.749995 each. The $125.0 million total spans both pieces. Pre-funded warrants are exercisable immediately at $0.000005 a share, and they will not be listed on any exchange.
The $7.75 price is 4.6% below the $8.12 last reported sale price on November 4. After the offering, 38,128,142 shares will be outstanding. The 10,235,077 new common shares are 26.8% of that count, which excludes the 5,893,964 shares behind the warrants.
The underwriting discount is $0.465 a share, leaving the company $7.285 per share before expenses. TD Cowen and Guggenheim Securities are the underwriters, and they expect to deliver the securities on or about Friday.
Money for hepatitis B and Duchenne
The company says the money will fund "continued research and development of PBGENE-HBV and PBGENE-DMD, and for working capital and general corporate purposes." Precision's ARCUS platform edits DNA inside the body. PBGENE-HBV is a potential cure for chronic hepatitis B, and PBGENE-DMD targets Duchenne muscular dystrophy.
The prospectus also carries fresh program updates dated Thursday. As of a September 28 data cutoff, 25 patients had received 59 doses of PBGENE-HBV. The company reports undetectable pgRNA, a marker of viral activity, in 100% of evaluable patients at the 0.4 mg/kg dose it expects to carry forward, with no serious adverse events at that dose. Phase 2 dosing is expected to begin in the first quarter of 2027.
In Duchenne, the first patient dosed completed an eight-week observation period with no reported safety concerns, and the independent safety monitoring board endorsed dosing additional patients. Initial safety data are targeted for year-end 2026.
Cash runway and the share count
Precision reported third-quarter results on Tuesday, with $108 million in cash, equivalents and restricted cash as of September 30. It expected that cash to fund operations through 2028.
The prospectus warns buyers of "immediate and substantial dilution" in net tangible book value, and says warrant exercises could add more. Separately, outstanding warrants from the company's March 2024 and November 2025 offerings cover 8,607,500 shares at a weighted average exercise price of $10.95.
The offering is expected to close on Friday, when the underwriters deliver the shares and pre-funded warrants.
Sources
- Form 424B5 — PRECISION BIOSCIENCES INC (DTIL) — SEC EDGAR
- Precision BioSciences announces $125M public offering; shares up (DTIL:NASDAQ) | Seeking Alpha — seekingalpha.com
- Precision BioSciences prices 10.24M shares at $7.75 in underwritten offering — Yahoo Finance
- Precision BioSciences Announces Pricing of $125 Million Underwritten Offering of Common Stock and Pre-Funded Warrants | Morningstar — morningstar.com
- Precision BioSciences Announces Pricing of $125 Million Underwritten Offering of Common Stock and Pre-Funded Warrants — businesswire.com
- Precision BioSciences Reports Third Quarter 2026 Financial Results and Provides Business Update — businesswire.com
