DURHAM — Precision BioSciences said a $125 million stock and warrant offering, together with existing cash, operating discipline and available at-the-market financing, is expected to extend its cash runway into the fourth quarter of 2029 and support two gene-editing programs through key next-stage milestones.
The Durham company’s Nov. 9 filing with the U.S. Securities and Exchange Commission says the offering covers 10,235,077 common shares priced at $7.75 each and pre-funded warrants to buy as many as 5,893,964 additional shares at $7.749995 per warrant.
The offering was priced to generate about $125 million in gross proceeds before underwriting discounts, commissions and other expenses. Gross proceeds are the total amount investors commit before transaction costs, so they are higher than the cash the company ultimately receives.
RTTNews reported that Precision plans to use the net proceeds for continued research and development of PBGENE-HBV and PBGENE-DMD, as well as working capital and general corporate purposes.
Precision said the proceeds, combined with its existing cash and cash equivalents, continued fiscal and operating discipline and access to its at-the-market facility, are expected to fund operations into the fourth quarter of 2029. The company projects that runway will carry both programs through what it described as key next-stage inflection points.
The financing is a material business development for a clinical-stage biotechnology company because drug-development programs can require years of research, trials and regulatory work before generating product revenue. Additional cash runway can reduce near-term financing pressure and give the company more time to reach data and development milestones.
The securities include common stock and pre-funded warrants, which allow certain investors to acquire shares after paying nearly the full purchase price upfront. Precision set the warrant exercise price at $0.000005 per share.
The runway projection is a forward-looking estimate, not a guarantee. Precision said actual results could differ because of clinical, regulatory, operating and financing risks described in its SEC filings.