Atrium Therapeutics rallies after $50 million equity raise
RNA•Atrium Therapeutics shares rose 11.3% before the bell after it agreed to sell about 6.3 million shares and pre-funded warrants at $7.93 in a $50 million private placement. The company estimates proceeds and existing cash will fund operations through 2028.
1. Private placement
Atrium agreed to sell about 6.3 million shares and pre-funded warrants at $7.93 to institutional investors, raising $50 million. It plans to use the proceeds to fund development of its two lead product candidates, other research programs and other purposes.
2. Funding outlook
Atrium estimates the proceeds, combined with existing cash and investments, will fund operations through 2028. Shares finished down 0.8% at $7.93 on Wednesday and had fallen about 44% over the previous month.
3. Company background
The San Diego-based company has collaboration agreements with Bristol-Myers Squibb and Eli Lilly and had about 17.1 million shares outstanding. Atrium began trading publicly on February 27 after being spun out of Avidity Biosciences, which was acquired by Novartis.
