SOUTH SAN FRANCISCO – Allogene Therapeutics, Inc. (NASDAQ:ALLO), a biotech firm focused on allogeneic CAR T therapies for cancer and autoimmune diseases, has announced an underwritten public offering of its shares. The company plans to offer 37,931,035 shares at a price of $2.90 each, aiming to raise gross proceeds of around $110 million.
The offering, which is expected to close by Thursday, May 16, 2024, pending customary closing conditions, has attracted mutual funds and large institutional investors. Notably, the offering also includes participation from leading healthcare specialists and members of Allogene’s Board of Directors and Executive Management Team.
Goldman Sachs (NYSE:GS) & Co. LLC is serving as the sole book-running manager for the transaction. The offering is made under a shelf registration statement filed with the Securities and Exchange Commission (SEC) on March 14, 2024, and declared effective on April 25, 2024.
Allogene has indicated that the proceeds will be used for general corporate purposes, which may include clinical trial expenses, research and development activities, and capital expenditures. The company, with headquarters in South San Francisco, is known for its development of off-the-shelf CAR T cell product candidates intended to provide cell therapy on-demand to a larger patient population.
Investors can access the final prospectus supplement and accompanying prospectus related to the offering once available, which will be filed with the SEC. For now, the SEC's website hosts the relevant documents.
This press release does not serve as an offer to sell or a solicitation of an offer to buy the securities in any state or jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
The information in this article is based on a press release statement from Allogene Therapeutics, Inc.
InvestingPro Insights
As Allogene Therapeutics, Inc. (NASDAQ:ALLO) moves forward with its public offering, investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Allogene's market capitalization stands at $495.1 million, with a notable Price to Book ratio over the last twelve months as of Q4 2023 at 0.97. This suggests that the company's stock is trading close to its book value, which could be a point of interest for value investors.
However, Allogene is facing challenges as indicated by a significant revenue decline of 39.1% over the last twelve months as of Q4 2023. The company's gross profit margins are also under pressure, showing a negative 255,598.95% over the same period. These metrics underscore some of the financial hurdles the company is encountering.
On the strategic front, Allogene holds more cash than debt on its balance sheet, which is a positive sign in terms of liquidity and financial stability. Moreover, five analysts have revised their earnings upwards for the upcoming period, reflecting a potential shift in market sentiment or expectations for the company's future performance. This could be a signal for investors to watch closely in the context of the public offering and the company's strategic initiatives.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available for Allogene, including insights on the stock's oversold status according to the Relative Strength Index (RSI) and the company's cash burn rate. To access these tips and more, investors can visit https://www.investing.com/pro/ALLO. Plus, with the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable insights to inform their investment decisions.
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