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Saturday, May 18, 2024

Precision Bio raising $37 million from investors

Durham-based Precision Biosciences is raising $37.1 million by selling shares in the company as well as warrants to investors, according to a filing with the Securities and Exchange Commission.

The company entered into an agreement with Guggenheim Securities to sell 2.5 million shares of its stock, as well as 2.5 million warrants, to investors.

The price of the offering is $16 per share and accompanying warrant. The warrants have a five-year term and an exercise price of $20 per share. The warrants are immediately exercisable, but the current stock price is below the warrant value.

Precision Bio says it will use the money to fund ongoing and planned research and development, and for working capital and other general corporate purposes. The company is an advanced gene editing operation utilizing a proprietary platform to develop in vivo gene editing therapies.

Investors in the offering include leading life sciences investors  Perceptive Advisors, Janus Henderson Investors, Aquilo Capital Management and LYFE Capital.

Precision Biosciences was founded in 2006 based on research by Duke University researchers Derek Jantz and Jeff Smith. It went public at $16 in 2019, raising $126 million.

Precision’s shares traded for less than $1 for most of 2023, but the company had a reverse stock split at a 1-for-30 ratio last month.

Precision Bio closed Tuesday at $12.21, down 29 cents.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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