Apogee Therapeutics (NASDAQ: APGE) stock was the cure for many an ailing stock portfolio on the second-to-last trading day of the week. The company's shares got a boost from some encouraging news on the financing front, and they closed the day nearly 13% higher in value. It's an understatement to say this compared favorably to the S&P 500's (SNPINDEX: ^GSPC) 0.3% decline.
New stock on the way
Apogee, a clinical-stage biotech that focuses on immunology and inflammation disorders, announced a new round of capital-raising. After market close Wednesday, it said it was floating a secondary issue of its common stock that could reap gross proceeds of around $300 million.
The company will offer just over 6.95 million shares at $41 apiece. Additionally, in lieu of common shares to certain investors it did not identify, it will sell pre-funded warrants granting the right to buy up to 365,853 shares of said stock. The price for each warrant will be slightly under that $41 per-share stock price.
Additionally, the underwriters of the issue have been granted an option to collectively buy up to nearly 1.1 million additional shares of Apogee.
Spreading the wealth
In its prospectus on the issue, Apogee wrote that it intends to use its share of the proceeds -- together with existing cash and other liquid assets -- to "fund preclinical studies, clinical trials, manufacturing, and commercial readiness activities in support of our antibody programs."
It also cited activities such as increased research and development spending as possible targets for the incoming funds.
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