Kadmon Holdings, Inc. (NYSE:KDMN) today announced the
closing of its previously announced public offerings for gross
proceeds of approximately $80.4 million, which includes the full
exercise of the underwriters’ option to purchase additional shares
and warrants. The financing was led by respected biotech investors,
including RA Capital Management, Vivo Capital and Acuta Capital,
among others.
Proceeds from the offerings will be used to advance the
development of Kadmon’s product candidates, including KD025, the
company’s lead Rho-associated coiled-coil kinase (ROCK) inhibitor,
which is currently in Phase 2 clinical studies in autoimmune and
fibrotic disease indications.
“This financing is transformative for Kadmon and provides the
resources to advance our various programs, in particular KD025 in
chronic graft-versus-host disease and idiopathic pulmonary
fibrosis, through multiple key inflection points,” said Harlan W.
Waksal, M.D., President and CEO at Kadmon. “In parallel, we will
continue to build our portfolio of preclinical ROCK inhibitors for
the treatment of autoimmune, fibrotic and neurodegenerative
diseases.”
“We have strengthened our balance sheet and expanded our
investor base to include top biotech funds that participated based
on the value of our scientific programs, validating our efforts to
date,” said Konstantin Poukalov, CFO at Kadmon.
Closing occurred with respect to a total of 22,275,000 shares of
common stock, with accompanying warrants to purchase an aggregate
of 8,910,000 shares of common stock, including the full exercise of
the over-allotment option, at a combined public offering price of
$3.001 per share and accompanying warrant (the “Offerings”). The
Offerings consisted of an underwritten offering (the “Underwritten
Offering”) and a registered direct offering (the “Direct Offering”)
to certain institutional investors. The closing of the remaining
4,500,000 shares of common stock and warrants to purchase 1,800,000
shares of common stock in the Direct Offering is expected to occur
on or about October 10, 2017.
Jefferies LLC and Piper Jaffray & Co. acted as the joint
book-running managers for the Underwritten Offering. H.C.
Wainwright & Co., LLC acted as the lead manager for the
Underwritten Offering.
The securities described above were offered pursuant to a shelf
registration statement on Form S-3 that was declared effective by
the Securities and Exchange Commission (the “SEC”) on August 11,
2017. The Offerings were conducted only by means of a written
prospectus and prospectus supplement that form a part of the
registration statement. A final prospectus supplement and
accompanying prospectus relating to the Offerings have been filed
with the SEC and are available on the SEC’s website at www.sec.gov. Copies of the final prospectus
supplement and the accompanying prospectus relating to the
Underwritten Offering may also be obtained by request at Jefferies
LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison
Avenue, 2nd Floor, New York, NY 10022, or by telephone at (877)
821-7388, or by email at Prospectus_Department@Jefferies.com; or at
Piper Jaffray & Co., Attention: Prospectus Department, 800
Nicollet Mall, J12S03, Minneapolis, MN 55402, telephone: (800)
747-3924, email: prospectus@pjc.com.
This news release is for informational purposes only and shall
not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of these securities, in any state
or jurisdiction in which such offer, solicitation, or sale of these
securities would be unlawful prior to registration or qualification
under the securities laws of any such state or jurisdiction.
About Kadmon Holdings, Inc.
Kadmon Holdings, Inc. is a fully integrated biopharmaceutical
company focused on developing innovative products for significant
unmet medical needs. We have a product pipeline focused on
autoimmune and fibrotic diseases.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended, including, without limitation,
statements regarding the closing of the Offerings and the
anticipated use of proceeds of the Offerings. Such statements may
be preceded by the words “may,” “will,” “should,” “expects,”
“plans,” “anticipates,” “could,” “intends,” “targets,” “projects,”
“contemplates,” “believes,” “estimates,” “predicts,” “potential” or
“continue” or the negative of these terms or other similar
expressions. Forward-looking statements involve known and unknown
risks, uncertainties and other important factors that may cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. We believe
that these factors also include, but are not limited to, (i) the
initiation, timing, progress and results of our preclinical studies
and clinical trials, and our research and development programs;
(ii) our ability to advance product candidates into, and
successfully complete, clinical trials; (iii) our reliance on the
success of our product candidates; (iv) the timing or likelihood of
regulatory filings and approvals; (v) our ability to expand our
sales and marketing capabilities; (vi) the commercialization of our
product candidates, if approved; (vii) the pricing and
reimbursement of our product candidates, if approved; (viii) the
implementation of our business model, strategic plans for our
business, product candidates and technology; (ix) the scope of
protection we are able to establish and maintain for intellectual
property rights covering our product candidates and technology; (x)
our ability to operate our business without infringing the
intellectual property rights and proprietary technology of third
parties; (xi) costs associated with defending intellectual property
infringement, product liability and other claims; (xii) regulatory
developments in the United States, Europe and other jurisdictions;
(xiii) estimates of our expenses, future revenues, capital
requirements and our needs for additional financing; (xiv) the
potential benefits of strategic collaboration agreements and our
ability to enter into strategic arrangements; (xv) our ability to
maintain and establish collaborations or obtain additional grant
funding; (xvi) the rate and degree of market acceptance of our
product candidates; (xvii) developments relating to our competitors
and our industry, including competing therapies; (xviii) our
ability to effectively manage our anticipated growth; (xix) our
ability to attract and retain qualified employees and key
personnel; (xx) our ability to achieve cost savings and other
benefits from our efforts to streamline our operations and to not
harm our business with such efforts; (xxi) our expectations
regarding the period during which we qualify as an emerging growth
company under the JOBS Act; (xxii) statements regarding future
revenue, hiring plans, expenses, capital expenditures, capital
requirements and share performance; (xxiii) litigation, including
costs associated with prosecuting or defending pending or
threatened claims and any adverse outcomes or settlements, whether
or not covered by insurance; (xxiv) the public offering; (xxv) the
future trading price of the shares of our common stock and impact
of securities analysts’ reports on these prices; and/or (xxvi)
other risks and uncertainties. More detailed information about
Kadmon and the risk factors that may affect the realization of
forward-looking statements is set forth in the Company's filings
with the U.S. Securities and Exchange Commission (“SEC”), including
the Company's Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q filed pursuant to Section 13 of the Securities Exchange
Act of 1934, as amended, with the SEC on the date hereof. Investors
and security holders are urged to read these documents free of
charge on the SEC's web site at www.sec.gov. The Company assumes no
obligation to publicly update or revise its forward-looking
statements as a result of new information, future events or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170928005832/en/
For Kadmon Holdings, Inc.:Ellen Tremaine, 646-490-2989Investor
Relationsellen.tremaine@kadmon.comorMaeve Conneighton,
212-600-1902maeve@argotpartners.com
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