Lexeo Therapeutics Announces Oversubscribed $95.0 Million Equity Financing
March 11 2024 - 6:30AM
Lexeo Therapeutics, Inc. (Nasdaq: LXEO), a clinical stage genetic
medicine company dedicated to pioneering treatments for genetically
defined cardiovascular diseases and APOE4-associated Alzheimer’s
disease, today announced it has entered into a common stock
purchase agreement with a select group of institutional and
healthcare accredited investors to issue and sell an aggregate of
6,278,905 shares of its common stock (“Common Stock”) at a price of
$15.13 per share, in a private placement. Lexeo anticipates the
gross proceeds from the private placement to be approximately $95.0
million, before deducting any offering related expenses. The
financing is expected to close on March 13, 2024, subject to
customary closing conditions.
The private placement was co-led by Braidwell LP and Adage
Capital Partners LP and with participation by new and existing
investors, including RA Capital Management, Surveyor Capital (a
Citadel company), Eventide Asset Management and Novo Holdings
A/S.
J.P. Morgan and Leerink Partners acted as co-lead placement
agents for the transaction. Stifel also acted as co-placement
agent.
Lexeo intends to use net proceeds from the financing to fund
advancement of ongoing clinical stage programs, and for working
capital and general corporate purposes. The proceeds from this
financing, combined with current cash, cash equivalents and
marketable securities are expected to fund Lexeo’s operating and
capital expenditures into 2027.
The shares of Common Stock to be sold in this financing have not
been registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state or other applicable jurisdiction’s
securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable
state or other jurisdictions’ securities laws. Concurrently with
the execution of the common stock purchase agreement, Lexeo and the
investors entered into a registration rights agreement pursuant to
which the company has agreed to file a registration statement with
the U.S. Securities and Exchange Commission (the “SEC”) registering
the resale of the shares of Common Stock sold in the private
placement. Any offering of the Company’s Common Stock under the
resale registration statement will only be made by means of a
prospectus.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy the Company’s Common Stock, nor
shall there be any offer, solicitation, or sale of the Company’s
Common Stock in any jurisdiction in which such offer, solicitation
or sale would be unlawful.
The private placement is being conducted in accordance with
applicable Nasdaq rules and was priced to satisfy the “Minimum
Price” requirement (as defined in the Nasdaq rules).
About Lexeo Therapeutics Lexeo
Therapeutics is a New York City-based, clinical stage genetic
medicine company dedicated to transforming healthcare by applying
pioneering science to fundamentally change how genetically defined
cardiovascular diseases and APOE4-associated Alzheimer’s disease
are treated. Using a stepwise development approach, Lexeo is
leveraging early proof-of-concept functional and biomarker data to
advance a pipeline of cardiovascular and APOE4-associated
Alzheimer’s disease programs.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements in this press release may constitute
“forward-looking statements” within the meaning of the federal
securities laws, including, but not limited to, our expectations
and plans regarding our current product candidates and programs,
including statements regarding the expected closing of the private
placement, anticipated receipt and use of proceeds from the private
placement, whether the conditions for the closing of the private
placement will be satisfied, the filing of a registration statement
or final prospectus, as applicable, to register the resale of the
shares of Common Stock to be issued and sold in the private
placement, the anticipated cash runway following closing of the
private placement, and other information that is not historical
information. Words such as “may,” “might,” “will,” “objective,”
“intend,” “should,” “could,” “can,” “would,” “expect,” “believe,”
“design,” “estimate,” “predict,” “potential,” “develop,” “plan” or
the negative of these terms, and similar expressions, or statements
regarding intent, belief, or current expectations, are
forward-looking statements. While Lexeo believes these
forward-looking statements are reasonable, undue reliance should
not be placed on any such forward-looking statements. These
forward-looking statements are based upon current information
available to the company as well as certain estimates and
assumptions and are subject to various risks and uncertainties
(including, without limitation, those set forth in Lexeo’s filings
with the SEC), many of which are beyond the company’s control and
subject to change. Actual results could be materially different
from those indicated by such forward looking statements as a result
of many factors, including but not limited to: risks and
uncertainties related to global macroeconomic conditions and
related volatility; expectations regarding the initiation,
progress, and expected results of Lexeo’s preclinical studies,
clinical trials and research and development programs; the
unpredictable relationship between preclinical study results and
clinical study results; delays in submission of regulatory filings
or failure to receive regulatory approval; liquidity and capital
resources, including the anticipated closing of the private
placement and anticipated runway extension; and other risks and
uncertainties identified in Lexeo’s Quarterly Report of 10-Q for
the quarterly period ended September 30, 2023, filed with the SEC
on December 11, 2023, and subsequent future filings Lexeo may make
with the SEC. New risks and uncertainties may emerge from time to
time, and it is not possible to predict all risks and
uncertainties. Lexeo claims the protection of the Safe Harbor
contained in the Private Securities Litigation Reform Act of 1995
for forward-looking statements. Lexeo expressly disclaims any
obligation to update or alter any statements whether as a result of
new information, future events or otherwise, except as required by
law.
Media Response:Carolyn Hawley(619)
849-5382Carolyn.hawley@inizioevoke.com
Investor Response:Laurence Watts(619)
916-7620laurence@gilmartinir.com
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